ABOUT THE COMPANY:
Social Construct Company set out to solve the problem of high multifamily construction costs in cities. They developed a software platform to streamline the construction process.
SITUATION:
The Company's early stages of commercial growth coincided with the pandemic -- which carried the spectre of plummeting rents due to reduced demand for multifamily real estate. The Company pursued additional capital from new investors, to no avail. Existing investors were fatigued. Their secured creditor foreclosed on the assets and hired employees, leaving the founders with a stack of liabilities.
ENGAGEMENT:
A board member who had previously put a portfolio company into an assignment for the benefit of creditors ("ABC") suggested this route to the founders and introduced G2. After assessing the facts of the situation and explaining options to the Company, G2 agreed to serve as the assignee (similar to a trustee) in the ABC.
OUTCOME:
As assignee G2 became the point of contact with government entities and the Company's creditors, investors, and former employees. The Assignee stored corporate records, ensured tax returns were filed, pursued refunds, and managed estate cash.
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Exclusive Restructuring Advisor
G2 was engaged as Chief Restructuring Officer (“CRO”). Through the CRO, G2 developed and executed liquidity management tactics for the Company and its stakeholders.
Exclusive Restructuring Advisor
G2 was engaged to facilitate negotiations for more favorable payment terms with key vendors, aiming to optimize cash flow management.
Exclusive Restructuring Advisor
G2 was engaged to perform a Phase 1 strategic alternatives assessment.
Exclusive Restructuring Advisor
The Company engaged G2 as its Chief Restructuring Officer. Through the CRO, G2 developed and executed liquidity management tactics for the Company and its stakeholders.
Exclusive Restructuring Advisor
G2 conducted a rapid Phase 1 Assessment and developed a report that included an assessment of the business, operations, and financial condition of the Company, short-term liquidity, near-term capital requirements, and strategic alternatives.
Exclusive Restructuring Advisor
The Company engaged G2 to assist in building the long-term financial model, a 13-week cash flow forecast, facilitate negotiations between the Company, the sponsor, and the lender group.
Exclusive Restructuring Advisor
G2 was engaged to complete a Phase 1 assessment of the Company’s financial forecasts and its ability to return to pre-COVID levels of financial performance.
Exclusive Restructuring Advisor
G2 conducted a Phase I Assessment focused on liquidity and cash flow management assessment, business and operational strategy review, refinancing options, and strategic alternatives.
Exclusive Restructuring Advisor
G2 worked alongside creditors and management to develop a Phase 1 Assessment. G2 advised the lenders with respect to the financial position of the Company.
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Assignee
G2 launched a vigorous sale process in parallel with winding down the Company’s operations. Ultimately transacting a sale of the assets resulting in a recovery for the company’s secured creditor.
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