Client
Tobacco Products Wholesale Distributor (Cincinnati, Ohio)
Our Role
New Growth Advisors was retained by owner/manager to lead a viability assessment and if possible create a revitalization plan to allow the company to return to sustained profitable operation and find a replacement senior secured lender.
Problem
- The company’s revenues had declined, resulting in reduction of cash flow.
- Cash Flow and mounting operating losses limited available credit from secured lender under borrowing base formula.
- Lack of bank credit put company in difficult cash situation, vendors were requiring either cash in advance of orders or very prompt payment terms and company’s supplies were on allocation.
Our Solution
- NGA completed a viability assessment showing the company could be returned to sustained profitable operation.
- NGA lead management in creation of a revitalization plan and aided in its implementation
- NGA lead the effort to identify potential refinancing lenders.
- NGA communicated with in place secured lender as the population of potential refinancing lenders was narrowed.
Outcome
Senior secured lender replacement was found and refinanced the entirety of Company’s bank debt.
