Upscale casual dining featuring fresh brewed hand-crafted beers. $90 million annual sales. $30 million debt. 26 locations across 11 states.
- Lack of working capital.
- Extensive use of capital leases relating to an expansion program.
- $74 million of capital leases in secured debt.
- $90 million in total sales.
- $3.5 million annual cash loss.
- Declining sales resulted in need to make implement operational improvements.
- MorrisAnderson engaged to lead debt restructuring negotiations with key parties.
- Lessors holding ground leases.
- Financial institutions holding equipment leases.
- Ultimate goal to obtain cash flow relief needed to implement operational improvements.
- Negotiated $16 million debt-to-equity swap with largest debt holder.
- Resulted in $3.5 million of annual cash savings.
- Realized $1.4 million of annual savings associated with real property and equipment leases.
- $4.9 million of total cash savings realized.
- Results reveal net income improvement of $1.8 million stemming from operational improvements.