Situation

Skybox’s product began losing relevance in the fast-moving cybersecurity sector, and the Company’s attempt at shifting to a SaaS offering proved too slow to gain traction. Meanwhile, competitors were able to adapt.Skybox held over $100 million of funded debt as well as significant trade liabilities, and lacking revenue at a scale sufficient to service its debt payments, became insolvent. 

The Company faced significant operating losses and severe liquidity constraints. Limited cash runway and uncertainty surrounding a potential asset sale prompted the Company to sell its assets and explore the possibility of an insolvency proceeding for the remaining entity.

Engagement

The Company initially engaged G2 to advise the board and management team on the strategic alternatives to consider to address existing challenges. The scope of work also included development of a wind-down budget, assessment of international fiduciary and payroll obligations, and coordination of discussions with lenders and counsel. The board ultimately decided to enter into an assignment for the benefit of creditors (“ABC”) process. Following commencement of the ABC, G2 as assignee managed the orderly wind-down and liquidation of entities across eight countries both directly and through local professionals.

Outcome

The engagement required G2 as assignee to develop a complex cross-border wind-down strategy involving a combination of solvent liquidations, strike-offs, and formal insolvency proceedings across multiple international subsidiaries. G2 navigated an array of obstacles to ultimately deliver an orderly conclusion across all entities.