Representative Debtor Advisory Engagement

AEG Partners was retained by a company with $450 million in revenue in the promotional products industry. The company's 30 plus-member bank group had become divided and the tone between the company and its lenders had become adversarial, causing the restructuring process to break down.

AEG's charge was to evaluate the business, preserve liquidity, recommend a course of action, and spearhead the restructuring of a $500 million capital structure. We quickly concluded that a Chapter 11 filing would irreparably harm the business. To avoid a bankruptcy, AEG assisted the company in developing reasonable forecasts, restored its credibility with the lenders, and implemented programs to enhance cash flow.

We were then able to develop a consensual recapitalization solution that won unanimous support from the banks, reducing the company's debt service markedly and minimizing the dilution to the private equity sponsor, who was able to retain control of the business.