27 restaurant locations (Southern US). $60 million annual revenues. $15 million debt.
- Location expansion built extensively on build-to-suit leases.
- Sharply declining revenues resulted in several locations operating with negative cash flow.
- Company enters bankruptcy while management struggles with reporting and timely financials and projections.
- MorrisAnderson engaged as CRO to assist in the implementation of improved financial reporting and projections.
- Budget delay due to weekly operating losses of $100,000 required immediate resolution.
- Sale plan implemented quickly to achieve an expedited 363 sale.
- MorrisAnderson negotiated sale agreement with stalking horse bidder.
- Cash constraints led to court approval of limited marketing campaign.
- MorrisAnderson contacted 80 prospective buyers, receiving seven confidentiality agreements and two offers within two weeks.
- Majority of operating assets and all equipment sold as part of 363 process.
- Expedited 363 sale process completed within 40 days.
- Including assumed debt, the Company sold for over $70 million resulting in full pay-out of secured claims totaling $12 million.