ABOUT THE COMPANY:
The Company aims to provide Cellular Lightweight Concrete ("CLC") technology to developers, enabling the construction of high-quality, affordable, and sustainable communities. Through the provision of mobile, onsite CLC machines, formwork, and construction expertise, The Company strives to reduce waste, labor, and material costs for developers. The Company was founded in 2015 and is based in NY.
SITUATION:
After spending significant amount of capital into staffing, equipment, land, legal structures, and business development efforts, the Company struggled to gain traction in the historically rigid affordable housing construction industry especially in developing countries. Even with the associated benefits of a higher quality product, the Company did not achieve any meaningful penetration (<1%) into the market when forced to compete on the pure economics of the alternatives. The Company reached the fully committed funding amount for the anchor investor which was roughly $90MM and projected additional funding requirement of at least $17MM through 2028, with no anticipated material improvement in the financial performance.
ENGAGEMENT:
G2 was retained to conduct a rapid Phase 1 Assessment of the Company and developed a thorough report that included the assessment of the business, operations, and financial condition of the Company, short-term liquidity, near-term capital requirements, and strategic alternatives.
OUTCOME:
G2 conducted an independent and in-depth analysis of the business model and asset portfolio, scrutinized the financial and liquidity projections of the Company, and executed a comprehensive assessment of strategic alternatives. Subsequent to this evaluation, G2 reached the conclusion that the business model is not poised to achieve breakeven in the foreseeable future. The attainment of profitability would necessitate an unrealistic and exponential expansion in market share. Consequently, G2's recommendation was for an organized wind-down of the Company. This strategic recommendation was proposed with the primary objectives of mitigating shareholder losses and maximizing the potential recovery for the shareholders.
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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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