Serving as CRO, Providing Strategic Advisory, and Supporting a §363 Sale
A leader in the innovative manufacturing and sale of compressed natural gas (CNG) and hydrogen fuel storage tanks and powertrain/industrial systems and embedded controls was facing debt defaults across $12.5MM in secured convertible notes, and a $7.5MM bank line of credit.
Strategic §363 Sale
- Served as CRO and evaluated and implemented strategic and tactical options to keep the Company fully operational throughout the liquidity crisis and restructuring.
- Managed the debtor through a Chapter 11 bankruptcy process, including lender negotiations, liquidity management, budgeting/reporting, preparing long term financial projections, and negotiating with key suppliers with the objective of efficiently pursuing an asset sale or reorganization of the business.
- Administered a §363 sale of substantially all company assets, with a stalking horse bid of approximately $25MM provided by prepetition convertible noteholder Douglas Acquisitions LLC, a $1B private equity firm in Northern California.
As CRO, our team helped manage liquidity and the successful restructuring and strategic §363 Sale to Douglas Acquisitions LLC. The transaction allowed the Company to restructure its debt obligations and, through new ownership, provide the financial foundation for continuity and enhancement of the business. It also enabled a 100% recovery to all secured first and second lien lenders.