Project Beam

Situation

Facing a deteriorating liquidity position, low employee morale and no fundraising prospects, board members convened and made the decision to consult providers of fiduciary services to explore options.

Engagement

The Company engaged G2 to serve as assignee in an assignment for the benefit of creditors (“ABC”) process. G2 created a special-purpose entity to serve as assignee, with responsibility to pursue a sale of the assets, wind down the corporate entity in an orderly manner, and distribute remaining funds to creditors.

Outcome

As assignee in the ABC, G2 immediately launched a vigorous sale process in parallel with winding down the Company’s operations. G2 brought three parties through due diligence, ultimately transacting a sale of the assets with a strategic party, resulting in a recovery for the company’s secured creditor.