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Read MoreAs CRO of an illiquid tire retailer and wholesaler, Stapleton Group negotiated a forbearance agreement with the company’s bank, restructured operations, sold assets, and refinanced its debt.
The company had defaulted on its revolving line of credit just prior to the COVID-19 pandemic. When its sales and cash flow deteriorated quickly during the lockdowns, its bank wanted out of its $15.5M commitment. The bank’s forbearance provided sufficient relief for our experts to work with the company’s new CFO to:
Poor cash flow management had resulted in shortfalls, rendering the company incapable of paying down or refinancing its matured $13.5M revolving line of credit and $2.0M letter of credit facilities. It could not pivot its high fixed cost business model quickly in response to the lockdowns, so its secured lender advised the company to hire a CRO with the goal of refinancing its debt.
Our key actions resulting in the successful restructuring were:
David Stapleton, CPA, CLPF
Senior Managing Director
Strategic Advisory Practice
+1 213 235 0601
[email protected]
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