Project Description
Issue
- Business model challenged by increasingly digital world resulting in significantly shrinking market opportunity
- Declining stock price and employee layoffs resulting in morale issues
- High legacy costs with proprietary manufacturing
- Highly leveraged balance sheet with liquidity crises
Solution
- Provided realistic assessment of prospects to board
- Began contingency planning
- Provided effective and actionable advice to board
- Negotiated with creditors and new bankers
- Raised cash through sale of assets and businesses and by greatly expanding technology brand licensing
- Dramatically reduced operating costs
- Effectively managed bankruptcy process
Result — Executive Management
- Positioned company for efficient restructuring
- Guided company through Chapter 11 bankruptcy proceedings
- Exited Chapter 11 in a timely manner with sale to private equity buyer