FlexEnergy

Situation

FlexEnergy (“Flex” or the “Company”) manufactured a turbine power generator that provided clean energy from various fuels to a variety of markets. Following several rounds of venture funding, the Company found itself running out of money, facing maturing senior debt and, as a result, on the verge of bankruptcy or liquidation.

Engagement

Following failed efforts by a previous bank to identify a strategic or financial partner for the Company, Gordian was engaged to assist the Company and its Board in facilitating a consensual solution between an existing investor group that had disparate agendas and priorities. This work included assisting in negotiating the structure and terms of a consensual recapitalization that was funded by an investor consortium comprised of new and existing capital providers, and required the consent of non-participating investors that would be severely diluted as a result.

As part of the engagement, Gordian also rendered a Fairness Opinion in connection with the ultimate restructuring.

Outcome

Gordian was able to broker a consensual solution that resulted in the spinoff of one of the Company’s businesses to existing / non-participating investors (along with funding for its operations), while providing the necessary control in the core business to the new investors.

As a result of Gordian’s efforts, the Company avoided liquidation, repaid its senior loan, funded near-term growth and expansion and provided a recovery to the Company’s existing shareholders.