ABOUT THE COMPANY:
The Company is a specialty importer and distributor of non‐perishable food and beverage products to foodservice distribution customers across the U.S. The Company generated $124MM in revenue and $6.5MM in adj. EBITDA in FY’19.
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.
DEAL TEAM:
TAGS:
Exclusive Restructuring Advisor
Transportation & Logistics
Financial Restructuring
Strategic Assessment
Operational Revitalization
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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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