Gordian Group was engaged as financial advisor to the Company to sell the business in an extremely short time frame, and was successful in creating a competitive auction that resulted in certain secured creditors buying the assets at a higher than anticipated level.
Case Study
IdleAire Technologies
CLIENT: IdleAire Technologies
Business Profiles
Situation
IdleAire was the leading provider of comprehensive in-cab idle-reduction services to the heavy-duty trucking industry and long-haul truck drivers. Despite over $450 million invested in research, development and network expansion, IdleAire had not yet reached cash flow "breakeven" and faced a serious liquidity shortfall in early 2008. Faced with no alternative, a subset of the senior noteholders agreed to fund a bankruptcy 363 sale process, and acted as a stalking-horse bidder in an amount approximating the amount of Debtor-in-Possession financing they had provided.
Engagement
After the termination of the company’s former financial advisor, Gordian Group was hired after the bankruptcy filing to spearhead a sale process. In a fast-track effort from a "standing start" we conducted a comprehensive sale process in which it contacted more than 125 potential investors with respect to the acquisition or financing of IdleAire.
Outcome
Gordian Group successfully brought a competing bidder to the auction, which allowed for an auction to be conducted that provided for dramatically improved results for the estate, including a seventy-five percent (75%) increase in the stalking-horse cash purchase price, the ability of nonparticipating senior noteholders to achieve a recovery and the agreement to offer employment to almost all IdleAire employees (saving approximately 1,200 jobs).