Services: Financial Advisory Industries: Technology Professionals: Henry Owsley, Patricia Caldwell, Peter Kaufman
Gordian Group was engaged by Alert’s limited partners to develop and negotiate a plan of reorganization, which ultimately resulted in the retention of approximately 97% of the pro forma equity of the Company.
Summary
Client: Official Limited Partners Committee
Situation:
Alert Centre, one of the nation’s largest home and commercial alarm monitoring companies, raised more than $225 million through the sale of limited partnership units and over $100 million through borrowings. Such funds were used largely to acquire alarm monitoring accounts. As a consequence of poor acquisitions, operating difficulties and allegedly fraudulent activities, Alert Centre and the limited partnerships filed for Chapter 11 protection. Previously, certain class actions were filed against various prior officers, directors and shareholders, claiming, among other items, securities law violations with respect to the sale of limited partnership interests.
Engagement:
The Official Limited Partners Committee engaged Gordian Group to assist in analyzing Alert Centre’s business and to develop and negotiate a plan of reorganization.
Outcome:
Gordian Group was instrumental in effecting a plan of reorganization together with a simultaneous resolution of the various class action suits. Gordian’s engagement and the resulting POR ultimately resulted in the retention of the Company by the limited partners. Alert Centre emerged from Chapter 11 with the limited partners owning approximately 97% of the company’s pro forma stock, and the subsequent sale of Alert Centre resulted in the limited partners ultimately enjoying one of the best equity recovery results of the 1990s.