Project Admiral

Situation

The significant decline in restaurant traffic resulting from the Covid-19 pandemic lockdowns reduced demand for the Company’s products, resulting in EBITDA decline and strained liquidity. In late 2019 the Company defaulted under its credit agreement, and the parties entered into a forbearance agreement, which expired. The lender wanted a financial advisor to conduct a formal assessment of the borrower’s business and present findings.

Engagement

The lender engaged G2 to complete a Phase I Assessment. G2 spent four weeks deeply researching and analyzing the Company to gain an understanding of its competitive positioning, forecasted performance, liquidity and capital structure viability, and understanding of management strategy and organizational capabilities. G2 then delivered its assessment providing insights about the company’s business, team, product mix, and risks and considerations. G2 recommended a plan to unlock value for this key stakeholder.

Outcome

Shortly after reviewing G2’s conclusions, the senior lender closed on a restructuring in which it exchanged a portion of its debt for all borrower equity, created a new holding company, and reinstated $30MM of debt with a new revolving line of credit.