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Situation:

• Declining sales
• Low margins
• Bank-line covenant defaults
• Mezzanine debt payment default
• Franchisees unhappy

Solution:

• Restructured mezzanine debt to gain control
• Renegotiated bank credit facilities
• Indentified and appointed new CEO and independent board
• Worked closely with the new CEO to rebuild the management ranks
• Implemented the reorganization and turnaround plan

Result:

• Company business stabilized
• Bankruptcy is avoided
• Private equity firm purchased the company
• Mezzanine investors’ recovery far exceeded expectations