|More CASE STUDIES|
Copyright © 2006-2007 Richard Henry Group, LLC. All rights reserved
The declining market in home building caused the
Company’s retail operations’ profits to fall dramatically in
2005. Further decline in 2006, compounded by the loss of
two key employees and large one-time non-recurring write
downs (recommended by an outside-accountant) resulted
in a significant 2006 loss for its retail stores. When the
Company violated two financial covenants in bank syndicate
loans, one of the members of the syndicate decided to exit
the relationship and asked the Company to refinance its
portion of the debt.
First, Richard Henry Group First, RHG developed and
directed a strategy to:
As a result, RHG negotiated a forbearance agreement with
the current lender to allow the Company sufficient time to
seek alternative financing under mutually acceptable terms.
Then, RHG recommended and implemented a plan to
successfully refinance the debt in a more appropriate facility.
|RICHARD GROUP, LLC
|Business Development and Turnaround Advisors