Case Study

Mayflower Group

CLIENT: Mayflower Group Debentureholders

Gordian Group served as financial advisor to the bondholders.

Business Profiles

Situation

Mayflower Group, a moving and contract bus company, was taken private in a leveraged buyout in late 1986. Primarily as a result of a downturn in the economy, the Company was unable to service its indebtedness.

Engagement

The debentureholders retained Gordian Group in February 1991 to advise them in assessing the value of the businesses and in structuring and negotiating the terms of a restructuring with the Company, its banks and the stockholders in order to maximize the debentureholders’ recovery.

Outcome

The Company and the debentureholders reached an agreement in principle, which was implemented through a "prepackaged" bankruptcy plan approved by over 95% of the creditors. Mayflower emerged from bankruptcy in March 1992.