Études de cas
J.S. Held acquiert Element Forensic Engineering, renforçant ainsi ses capacités dans le domaine de l'assurance pour les pertes matérielles importantes et les sinistres touchant les entreprises de taille moyenne partout au Canada
En savoir plusA 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%.
> Responsable de la restructuration (CRO) et services de gestion intérimaire
Nos cadres intérimaires expérimentés conseillent et assistent les entreprises en difficulté financière, en hypercroissance ou ayant des postes inoccupés au sein de leur direction. Qu'il s'agisse d'un déficit au niveau de la direction dû à des difficultés d'exploitation, à la démission récente d'un responsable, à la nécessité d'un appui supplémentaire en période de forte activité ou à une recherche prolongée d'un candidat permanent, nos cadres expérimentés apportent une aide immédiate et une valeur ajoutée.
> Services de redressement et de restructuration
Pour relever les nombreux défis auxquels sont confrontées les entreprises en transition, il est nécessaire d'adopter une approche opérationnelle allant au-delà du simple bilan, afin de minimiser les dégradations et d'ouvrir la voie à une croissance durable. Nous nous appuyons sur des décennies d'expérience dans le domaine du redressement économique, afin d'aider les entreprises en transition à identifier des stratégies pratiques dans le but d'améliorer au plus vite leur rentabilité et leurs liquidités, tout en développant et en exécutant un plan de relance complet, favorisant ainsi la création de valeur à long terme et de manière durable.
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