Phoenix serves as CEO, Chief Restructuring Advisor, and Treasurer to a retail cafeteria chain. The Company was sold with the secured creditors being paid in full.
The Company was a $365 million publicly traded Retail Cafeteria Chain operating 205 stores in 16 Southeastern and Mid-Atlantic states.
The Company was facing a liquidity crisis. Sales had dropped for the past five years, it was paying high interest rates on its debt, and its pension plan was under-funded by $40 million.
Phoenix Management Services was hired by the Board of Directors to assess the Company’s situation and to develop a plan to save the Company. Phoenix assumed the roles of CEO, CRO, and Treasurer in conjunction with the objective of exploring all available strategic options. Phoenix ultimately recommended and implemented the Company’s pre-planned bankruptcy filing and subsequent sale and reorganization. Phoenix conducted a 363 sale that generated $80 million for the Company’s assets, $26 million greater than the stalking horse bid of $54 million. Secured creditors were paid in full, and the unsecured creditors’ recovery was enhanced 850% (from 3 cents under the original offer to more than 43 cents).
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