A second-generation Publishing Company had experienced more than three consecutive years of losses.
The senior lender informed our client that their line of credit (LOC) had been terminated and the term debt would not be renewed. There was a seven-figure subordinated shareholder debt at risk. Shareholders were unsure about the best course of action, which could be to restructure, sell the company, or liquidate.
Cascade Partners’ Restructuring Team was engaged to review strategic alternatives and made recommendations for restructuring operations, as well as marketing, and book selection processes. Unproductive assets were then sold to pay off senior and subordinated term debt, while fulfillment, logistics, and warehousing were outsourced to a third-party. These steps resulted in a more efficient and profitable business.
The Cascade Advantage
Cascade’s Restructuring Team’s strategies allowed our client to pay off the senior lender in full prior to termination. Additionally, all shareholder subordinated debt was paid in full. The team also sourced a new LOC. As a result, the client’s current cash balance exceeds seven figures, and operations have remained profitable since the completion of the restructuring activities.