Troll Communications, LLC

Division: Phoenix Capital Resources, Phoenix Management Services


Troll Communications, LLC was a $45 million New Jersey-based publisher and marketer of children's books.


The Company had experienced a rapid and substantial decline in revenues, and was losing market share to its largest competitor, Scholastic, Inc., at an alarming rate. Phoenix quickly determined that at the depressed revenue levels it was not possible to restore the Company to profitable performance. Further, in the absence of a substantial cash infusion, Phoenix also determined that the Company could not continue as a going concern.


Phoenix worked closely with the equity sponsors and management and sought a strategic partner to acquire Troll. The company entered into an asset purchase agreement with Scholastic, Inc. and subsequently filed a Chapter 11 petition for the specific purpose of concluding the sale in accordance with Section 363 of the U.S. Bankruptcy Code. The sale was confirmed and completed in an expedited manner within 6 weeks of the initial Chapter 11 filing.