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Lender & restructuring advisory for acquisition of a leading health club

Context

Facing declining revenues, over $100M of debt, and potential forbearance, a $140M, 100-club chain of gyms needed restructuring. Its lender needed to evaluate strategic options and choose a path forward.

Value Created

Successful sale of company
to the secured lenders in a debt for equity transaction.
Partner with lender group
to support the Chapter 11 process, strengthen the financial performance and manage liquidity.

People

VALUE LEVERS

  1. Lender & buyside advisory
  2. Executive & legal collaboration

HOW WE DID IT

  • Provided lender liaison & advisory
  • Collaborated with new CEO, Chairman, and counsel to successfully close for the lender group on purchase of assets

Process

VALUE LEVERS

  1. Financial & strategic analysis
  2. Liquidity management
  3. Restructuring & sale strategy
  4. New entity formation

HOW WE DID IT

  • Negotiated DIP funding & stalking horse bid
  • Prepared Adequate Assurance package for submittal to Court
  • Managed §363 sale process & post-petition performance
  • Led post-auction transition & new entity setup