Transaction Type: Restructuring
Industry: Digital Media Company
We tend to get involved with companies that face a significant capital structure problem as a result of, but not limited to, destructive financing.

We work with companies to make necessary modifications to their capital structure.

In one particular instance, we identified a publicly listed company on the verge of filing for bankruptcy, as it was unable to meet its interest payments on its existing debt obligations. We worked with the company and its creditors to restructure its debt, resulting in an improved balance sheet and an investment worthy business.
This debt restructuring exercise:

(1)  Enabled cash to be used for operations by eliminating arduous interest payments;
(2)  Protected the business from potential bankruptcy; and
(3)  Allowed the company to focus on operations, rather than financing woes.

With our involvement, shareholder equity increased from $8 million to $25 million.