Situation Southern Regional Health Systems, Inc. (SRHS) is a community hospital serving the citizens of Clayton County in Georgia. Like many community hospitals in the United States, SRHS had run into several years of financial deficits due to a high level of indigent care, poor payer mix, and more profitable procedures going to other facilities. Despite additional capital infusions and restructuring efforts by other professionals, by mid 2015, SRHS was left with no other option but to file for Chapter 11 Bankruptcy protection in the hopes of being able to sell the hospital as a going concern.. Action In July 2015, SRHS engaged GGG to be its financial advisors through [...]
Situation Signal International, Inc. and affiliated entities (Signal) is engaged in the business of offshore drilling rig overhaul, repair, upgrade, and conversion, as well as new shipbuilding construction. Its operations are in Mobile, Alabama and Pascagoula, Mississippi. Signal had liquidity constraints due in large part to a decline in oil and gas prices, resulting in a slowdown of drilling operations in the Gulf region. In addition, Signal had incurred significant legal fees and expenses defending several pending litigations in New York, Texas and Louisiana. Signal filed for protection under Chapter 11 of the bankruptcy code in July 2015 in the hopes of being able to sell substantially all of the [...]
Situation A private trucking company heavily entrenched in the automotive industry wanted to diversify to the general commodities business as the automotive industry started to deteriorate. Although they were making progress towards diversification, rumors of the impending GM bankruptcy were making the owners and their lenders nervous. The Company had revenues in excess of $100 million prior to its restructuring and was funding millions of dollars of losses. Company lenders were long-term partners, who leant based on general lines of credit that became over advanced as the Company become more leveraged over the years. These lenders were seeking to place the Company in an asset based line with stricter covenants, to [...]
Situation Plymarts, Inc. was a 350 million dollar forest product business located in Atlanta, Georgia. The company had three subsidiaries including lumber yards, a custom stair business, and a specialty design and installation business. Swept into the perfect financial storm of 2008, Plymarts had 50% of its builder receivables deemed uncollectable, which resulted in their default on both asset-based and real estate loans. Action GGG was appointed as Director of Reorganization and subsequently became the Federal Receiver in oder to oversee the sale of the company’s assets. Successfully selling certain business segments, GGG closed 11 lumber yards, consolidated and sold inventory, and collected receivables Results Due to the swift actions [...]
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 [...]