How a pre-pack Assignment for the Benefit of Creditors preserved value through a competitive sale process.

CHALLENGE:

• The Company lacked sufficient liquidity to meet its current obligations (vendors, payroll etc) and service its longterm secured debt.
• Mounting creditor pressure and an unsustainable capital structure made a pre-packaged Assignment for the Benefit of Creditors (ABC) the most efficient path to maximize value and preserve the brand’s going-concern value.
• Resolution Financial Advisors served as Advisor and then as Assignee in a pre-pack ABC process.
  
  

APPROACH:

• Stabilized the estate and positioned the Company’s assets for sale and launched a competitive sale process to attract strategic and financial buyers.
• Coordinated with creditors, managed employee transitions, and resolved lien-related matters and negotiated a sales transaction structured with cash and equity in the Buying entity.
  
  

OUTCOME:

• Successfully closed the transaction within 74 days and transferred the Company’s assets to a new owner through a competitive sales process.
• Preserved the consumer brand, employee jobs, customer relationships, and potential long-term value. Turning lemons into lemonade.
  
  
  

Know Your Options.