ABOUT THE COMPANY:
Good Money Group was a venture-backed, mission-driven digital neobank. The Company raised over $50 million from an array of venture and retail investors to build a banking platform catering to socially conscious customers.
SITUATION:
The Company encountered acute opposition as it progressed toward commercial launch. The dismissal of unscrupulous actors from the ranks demanded considerable attention from the executive team. Competitive forces in their sector, including commodotization of consumer banking offerings, dimmed business prospects and left Good Money's platform undifferentiated. Management decided the responsible thing to do would be to cease operations and return a maximum amount to creditors rather than continue to burn through their funds in the face of insurmountable challenges.
ENGAGEMENT:
Upon review of the Company's profile and prospects, G2 agreed with Company counsel that an assignment for the benefit of creditors ("ABC") was the right path for Good Money Group. The board appointed a G2 special purpose entity to serve as fiduciary and trustee of the assets. In this assignee capacity G2 would have ownership of and stewardship over the assets, plus the associated duties of maximizing return to creditors and managing an orderly corporate wind down.
OUTCOME:
As assignee in the ABC, G2 immediately began the process of securing the array of physical and IP assets, managing disputes with various interested parties, and delicately unwinding the partnerships that had been essential for the commercial launch. With the crucial help of key members of the Company's management team, G2 monetized the assets and wound down corporate operations.
DEAL TEAM:
TAGS:
FinTech
ABC
Venture-backed
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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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