Estudios de caso
J.S. Held adquiere Element Forensic Engineering, ampliando así sus capacidades especializadas en seguros para reclamos de daños a la propiedad en el segmento de empresas medianas y de grandes en todo Canadá
LEER MÁSA private equity-owned restaurant franchisee operating 125 locations across Virginia, Illinois, Pennsylvania, Ohio, and North Carolina faced severe financial and operational challenges. The business was struggling to generate positive cash flow due to a combination of underperforming restaurant locations, rising labor costs, and food cost inflation. At the same time, the company had accumulated significant obligations to key stakeholders, including approximately $6 million in unpaid royalty and marketing fees owed to the franchisor and approximately $2 million in outstanding rent obligations owed to landlords.
The company's relationship with its franchisor had become increasingly strained due to approximately $30 million in deferred capital expenditures, the majority of which were related to required brand reimaging initiatives. Liquidity had deteriorated to the point where management projected the company would exhaust its available cash within one week unless an immediate restructuring strategy was implemented.
The company's secured lender faced significant risk on its approximately $36 million loan exposure. Previous advisors had concluded that the company would likely require approximately $10 million in debtor-in-possession financing to sustain operations through a Chapter 11 process and pursue a sale transaction. Recovery expectations were correspondingly low, with projections indicating the lender might recover only approximately 15 cents on the dollar.
Our team was engaged to serve as the Chief Restructuring Officer and work alongside management to rapidly evaluate restructuring alternatives and develop a plan to stabilize the business. Our experts immediately focused on addressing the company's structurally unprofitable operations by closing 35 loss-making locations, despite objections from the franchisor. These actions significantly reduced ongoing cash burn and improved the organization's ability to operate as it pursued a broader restructuring strategy.
To preserve liquidity, our team implemented selective payment deferrals and developed a detailed cash collateral strategy, enabling the company to continue operating during the Chapter 11 process without requiring a DIP loan. This eliminated the need for the additional $10 million funding previously projected by advisors. We also prepared a thoroughly vetted cash collateral budget to support operations throughout the restructuring process.
In parallel, our experts negotiated with landlords to obtain lease concessions and reductions while building a framework to maximize stakeholder value. To maintain operational continuity and retain key personnel throughout the restructuring, our team developed a milestone-based Key Employee Incentive Plan (KEIP).
Five months after the engagement, the company filed for Chapter 11 bankruptcy in the Northern District of Ohio, with a stalking-horse bidder already identified and a clear strategy to execute a Section 363 sale process. Working closely with an investment banking firm, we helped market the business to approximately 400 prospective buyers while coordinating with the lender to provide sufficient time for operational improvements and EBITDA enhancement prior to sale.
The restructuring culminated in a Section 363 auction process in which the restaurants were marketed and sold by geographic region. Ultimately, 82 of the remaining 90 restaurant locations were sold to four separate buyers. As a result of the restructuring strategy and sale process, the secured lender recovered 63% of its $36 million term loan, substantially exceeding the originally anticipated recovery of 15%.
> Servicios de director de reestructuración (CRO) y de gestión provisional
Nuestros experimentados ejecutivos interinos de la alta dirección asesoran y ayudan a las empresas que atraviesan dificultades financieras, que están experimentando un crecimiento desmesurado o que se enfrentan a vacantes críticas en sus posiciones de liderazgo. Independientemente de que el vacío de directivos se deba a desafíos operativos, a la reciente renuncia de un directivo, a la necesidad de apoyo adicional durante períodos de mucho trabajo o a una prolongada búsqueda de un candidato adecuado para un puesto permanente, nuestros experimentados ejecutivos aportan un alivio y un valor inmediatos.
> Servicios de recuperación y reestructuración
Superar los numerosos desafíos que enfrenta una empresa en transición requiere un enfoque operativo que vaya más allá del balance. Este enfoque tiene como objetivo evitar una mayor caída y crear un camino hacia el crecimiento sostenible. Basándonos en décadas de experiencia en el ámbito de la recuperación, ayudamos a las empresas en transición a identificar estrategias prácticas para mejorar la rentabilidad y la liquidez para lograr un alivio inmediato, al mismo tiempo que desarrollamos y ejecutamos un plan de recuperación integral para la creación de valor sostenible a largo plazo.
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