Situation Pinnacle Towers, Inc. (NASDAQ: BIGT), a 200 million dollar revenue provider of wireless communications space, was planning to file for Chapter 11 under the Bankruptcy Code to restructure their balance sheet. Action GGG worked with Pinnacle as their internal advisor in preparation for, and during, the pre-arranged bankruptcy proceedings to maximize returns to all parties. Results The syndicate of senior lenders received a full pay out as part of the plan reorganization approved by the Bankruptcy Court.
Situation NetBank, Inc. (NASDAQ; NTBK) was a bank holding company that owned several entities, including a thrift. Due to heavy NetBank, Inc. losses in consumer financing and mortgage lending, the FDIC, in one of the first in a large wave of FDIC take-downs, took possession of the bank thrift in 2007. Action When the company filed for protection under Chapter 11 of the Bankruptcy Code, GGG assumed the role of Chief Restructuring Officer, working closely with the FDIC as Receiver for NetBank’s bank assets. Results GGG successfully sold the majority of the assets of the company, including the commutation of six mortgage reinsurance companies. Working closely with a Creditor Committee [...]
Situation Lynx Chemical, a specialty chemical manufacturer, had one plant devoted to the carpeting industry and another to small batch specialty manufacturing for an assortment of other chemical companies. As the result of selling a separate plant at a loss, coupled with changing economic conditions, the company feel into conflict with its lender and became considerably out of covenant on its ABI. Action In this case, GGG acted as both Director of Reorganization and Interim CFO. However, due to mounting losses and a defaulted bank loan with a lender fatigued bank, Lynx filed for Chapter 11 under the U.S. Bankruptcy Code. With GGG intervention, the lender and court approved a [...]
Situation Founded in 1974, Life University set the standard of excellence in contemporary health for its chiropractic undergraduate and masters degree programs; the school had obtained an all-time high enrollment and was embarking on an expansion program. Unfortunately, Life University was then challenged with a loss of accreditation and defaulted on $35 million in secured bond debt. Action GGG was retained as Director of Refinancing to prepare and implement a budget based on declining attendance and to negotiate a forbearance agreement with the Trustee and Bondholders. Shortly thereafter, GGG also assumed the role of Chief Financial Officer, a position that was vacated when the CFO suffered an untimely heart attack. Integral [...]
Situation Laidlaw was a co-generation plant that supplied power to the New York power grid and operated a kiln drying facility. GGG was engaged to assess the company due to a default on its secured bonds. Action Post assessment, GGG was appointed as Receiver for the business. As Receiver, GGG renegotiated with creditors and former owners to reduce debt service and negotiated a forbearance agreement between the bondholders and the company. Due to mounting losses, the kiln business was closed and the power plant was renovated and rebuilt. Results Bonds were sold to another energy company, resulting in the successful conclusion of the Receivership.
Situation The Board of Jocks and Jills, a popular sports bar, was forced to file for protection under Chapter 11 of the Bankruptcy Code following a large legal judgment and the firing of its President. Action GGG worked with the company to secure a Debtor-in-Possession loan and advised Jocks and Jills regarding the closing of unprofitable locations. In addition, GGG streamlined corporate staff and the entire bankruptcy process. GGG was engaged to sell the company in a ‘363’ auction sale. Results After nine months the company had reduced the number of locations to a core group of profitable bars. The subsequent auction of the company resulted in several competing bids [...]
Situation A heavy highway construction company focused on a shrinking residential housing market wanted to reposition itself into the public bid utilities market in order to survive. Since the company’s strategies, operations management approach and financials did not support the shift into the desired market, they hired GGG as consultants. Action GGG provided a combination of operational, strategic and financial consulting services to guide the restructure of the company and meet its desired new market goals. The actions taken included selling excess equipment, restructuring debt agreements and management reporting, as well as introducing new metrics to insure the success of the company. Results With the help of GGG, Highway Construction [...]
Situation GGG was engaged by existing lenders to assess the viability of First Home Brokerage, LLC, a $100 million reseller of distressed middle-income housing in the outer boroughs of New York City. The fear was that First Home Brokerage was losing money and in danger of going out of business. Action After GGG determined that the company could only be saved with a significant infusion of new capital, the lenders requested that GGG liquidate the company. Results Foothill, the secured lender, was paid out in full, including all accrued fees; additional monies were available for sub-debt lenders as well.
Situation The Charter School of Arts and Sciences, one of the largest in the U.S., was experiencing severe losses. As a result, the school’s authorization was at risk. In addition, expansion had been financed with $30 million in secured tax-free bond financing. Action GGG was retained as Director of Organization. GGG worked closely with management and educators to re-engineer the cost structure of the school. In short order, the financial terms of numerous vendor contracts were reduced and payment plans were negotiated. Additionally, GGG, working intimately with the school’s CFO, bondholders and counsel, negotiating modified terms and forbearance of the bond issue. Results The school’s profitability, positive Fund Balance, was [...]
Situation C&C Technologies (C&C) was the world’s largest privately owned Global Oil Sub-Sea Survey Services Company. Headquartered in Lafayette, LA, C&C serviced drilling operations across the globe, both on land and offshore. However, C&C’s expansion strained its infrastructure and working capital. Further growth in an asset-heavy environment, with complex projects located in increasingly remote locations, would require increased support. Action C&C engaged GGG to assess their business model and financial operations, with an eye toward restructuring and continued growth in the global market. With GGG’s support, the company developed a series of options regarding the future of its business. The company commenced a parallel restructuring effort while considering an offer [...]