Working with a new senior lender, we put together a new $50 million credit facility. Because of the distressed nature of the situation the lender had to stretch the advance rates to provide adequate availability to meet working capital needs and to help effectuate management’s turnaround plan.
Tiger got the new senior lender comfortable in the quality of the underlying collateral. Further, as a show of support, Tiger participated in the new credit facility on a Pari-Passu basis.
Tiger worked with the company and senior lender on closing unprofitable locations, and supported the company through a restructuring plan, which included a plan of reorganization.
The bonds converted their debt into equity, and operated the company for several more years, before encountering additional financial difficulties.