Strategic Options — Turnaround: Publishing Company

Client

A second-generation Publishing Company had experienced more than three years of losses.

Situation

  • Informed by senior lender that line of credit (LOC) had been terminated and term debt would not be renewed
  • Seven figure subordinated shareholder debt at risk
  • Shareholders unsure about best course of action — restructure, sell or liquidate

Solution

  • Engaged BlueWater Partners to review and recommend strategic alternatives
  • Recommended restructuring operations, marketing and book selection process
  • Sold unproductive assets to pay off senior and subordinated term debt
  • Outsourced fulfillment, logistics and warehousing to third party

Result

  • Paid off senior lender in full prior to termination
  • Paid off shareholder subordinated debt in full
  • Sourced new LOC
  • Current cash balance exceeds seven figures
  • Operations have been profitable since the completion of restructuring activities

Published with client permission