Tri-Union Development

Situation

Tri-Union Development is an oil and gas exploration and development company based in Houston. The Company suffered from turnover in senior management and a lack of liquidity due to an aggressively leveraged capital structure. Tri-Union had attempted to negotiate with its secured bondholders and a major commercial bank to restructure its balance sheet and to provide liquidity for the Company’s day-to-day operations. At the time of Gordian’s engagement, these negotiations had come to a stalemate and Tri-Union was running out of cash.

Engagement

Gordian Group quickly assessed the playing field and provided advice to Tri-Union’s Board of Directors on how to bring the parties together to achieve a consensual prearranged bankruptcy that would maximize the value of the estate.

Outcome

Within a month of Gordian’s engagement, an advantageous agreement that addressed all of Tri-Union’s objectives was struck with the various constituencies.