Phoenix assists a title pawn lender with developing a plan of reorganization.
A Title Pawn Lender with $250 million in revenue, 550 operating locations and more than 1,800 employees.
The Company was unable to renew its existing line of credit with its senior lender due to significant deterioration in the credit markets. While the Company was very profitable, its independent investment bankers were unable to locate replacement financing. The Company determined the best course of action to retain the value of the franchise for the equity holders was to seek protection of Chapter 11 while it sought a new capital structure.
Phoenix was engaged to assist the Company with managing the development and flow of information to the various constituents in bankruptcy, negotiating with its senior lenders and other creditors, and assisting in the development of a plan of reorganization. As the Company operated in bankruptcy using cash collateral without a DIP loan, Phoenix was significantly involved in the management and reporting of cash flow.
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