Tobacco Products Wholesale Distributor (Cincinnati, Ohio)
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.
- 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.
- 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.
Senior secured lender replacement was found and refinanced the entirety of Company’s bank debt.