ABOUT THE COMPANY:
The Company is a leader in event services, providing audio and visual equipment on a rental basis for large-scale live gatherings from concerts to conventions. Additionally they provide IT managed services for organizations including equipment monitoring, deployment, security, and support.
SITUATION:
The pandemic's profound impact on live events significantly reduced demand for the Company's services. Nascent business lines focused on equipping remote workers with both gear and help desk support were promising but could not bridge the earnings gap that opened in 2020. The drop in revenue and earnings led to the Company defaulting on its loan agreement.
ENGAGEMENT:
The Company and its private equity sponsor retained G2 as financial advisor to provide guidance in its negotiations with its lenders toward a loan restructuring. As a trusted guide over a two-year period, G2 represented the Company in discussions with its lenders and helped ownership evaluate its strategic alternatives - including an M&A exit, capital raise, acquisition of another business, bankruptcy, and debt restructuring.
OUTCOME:
G2 served the interests of the Company by negotiating the terms of multiple forbearance agreements, providing relief from covenants and shifting the senior lender's penalty from a current cash obligation to payment-in-kind interest.
DEAL TEAM:
TAGS:
Exclusive Restructuring Advisor
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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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