Breakaway Solutions, Inc.

Division: Phoenix Management Services


Client

Breakaway Solutions, Inc. was a $50 million developer and host of interactive Web sites based in Pennsylvania.

Problem

Due to the near total loss of its market during the tech bubble collapse, Breakaway Solutions’ lenders became nervous and wanted an outside, third-party expert to assess the situation and recommend an appropriate course of action.

Solution

Phoenix Management Services conducted an operational assessment, acted in interim management roles as CEO and CFO, and concluded that the Company would require a significant cash infusion to continue in its current form. Phoenix then acted in the role of bankruptcy advisor and managed the liquidation and wind down of the business. Because of Phoenix’s actions, the senior lender saw a total recovery of its loan balance after the successful liquidation and sale of the business.