ABOUT THE COMPANY:
The Company develops and licenses innovative technologies utilized by telecommunications providers worldwide. Their market-leading AI-driven solutions make internet connections run faster and more reliably by optimizing the performance of whatever infrastructure is in place, be it copper wires, fiber, or various generations of Wi-Fi including Wi-Fi 6, or 5G.
SITUATION:
The Company borrowed $20MM in late 2020 from a private lender consortium serving the middle market, then tripped covenants in the first two full quarters due to lower-than-expected revenue stemming from large customer misses. The outlook for business performance was poor, which would prevent the Company from a quick recovery from its breach. The lender further complicated the situation by announcing its desire to exit the relationship, and accordingly sent a highly aggressive restructuring proposal. The Company needed a financial advisor to help it formulate a constructive response to the lender and advocate for reasonable, market-based solutions to an increasingly challenging situation.
ENGAGEMENT:
The Company engaged G2 as financial advisor to provide assistance in preparing for and executing negotiations with its lender toward a forbearance agreement or amendment with its lender.
OUTCOME:
G2 helped the Company navigate lender discussions and reach agreement with its lenders on an amendment in late 2021. Six months later the Company re-engaged with G2 for advisory assistance as it evaluated acquisition offers and further restructuring. The Company ultimately accepted an acquisition offer.
DEAL TEAM:
TAGS:
Exclusive Restructuring Advisor
Financial Restructuring
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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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