The only alternative to an insolvency was a negotiated restructuring where lenders (both institutional and retail) would provide relief and compromise and term out their debt in exchange for equity.

• Performed a bottom up analysis of the prospects of the business with a restructured balance sheet
• Supervised the preparation of a detailed revised business and financial model and forecast
• Prepared valuation analyses under different scenarios
• Prepared a series of detailed presentations for discussion with the lenders
• Conducted all discussions with the lenders
• Drafted the agreement in principle for a negotiated restructuring
• Successfully negotiated the restructuring

• External secured debt consolidated into one class
• Face amount of secured debt reduced by 65%
• Debt termed out at 4.5 years, with a two-year interest holiday
• Debt holders would receive ~ 25% of the equity of the company pro forma
• Company’s shares traded up 37.5% the day after the announcement, and are up over 200% less than a year later