Safeguard Business Systems

Situation

Gordian Group was engaged in 1999 to advise Safeguard and its corporate parent with respect to various alternatives

Engagement

Over the course of many months, Gordian Group examined a number of capital markets alternatives, and engaged in a series of discussions with Safeguard’s major creditors. These discussions led to additional financing, as well as to a moratorium on certain creditor payments. This increased financial flexibility allowed management the wherewithal to improve operations significantly. As a result of continuing discussions with the creditor constituencies, Safeguard was able to achieve a consensual resolution with its major creditors whereby most of the company’s debt was converted into equity.

Outcome

In connection with this restructuring, Safeguard’s old equity constituency achieved an attractive recovery.