Replenish

Situation

Facing a daunting and complex commercialization path on its own, the Company tried to sell itself to a strategic in order to ensure its technology would be brought to market. While promising discussions were held, ultimately the pace of decision making among those potential acquirers did not align with the Company’s cash runway, and the board needed to find a way to quickly exit while protecting creditors’ interests.

Engagement

G2 conferred with management to assess the situation. In light of the company’s profile, G2 recommended an assignment for the benefit of creditors (“ABC”) as the most prudent course of action. This process, a nimble and less expensive alternative to bankruptcy, involves a wind down and asset sale administered by a third-party fiduciary, the “assignee”. G2 created a special purpose entity to serve as assignee. Upon launching the ABC, the Company’s board and management resigned.

Outcome

As assignee, G2’s special purpose entity immediately launched an accelerated process to sell the company’s intellectual property. Leveraging G2’s robust investment banking capabilities and resources, the team received multiple offers and closed the sale. Proceeds were several orders of magnitude higher than management had contemplated at ABC outset, and were sufficient for the Assignee to not only pay back the secured debt in full, but also distribute excess funds to unsecured creditors.