Gordian Group advised a prominent hedge fund regarding the proposed treatment of its investments in a national cable provider suffering from excessive leverage and liquidity constraints in respect of a prenegotiated plan of reorganization.
Case Study
Undisclosed Cable Provider
CLIENT: Undisclosed Hedge Fund
Industries
Media & TelecomBusiness Profiles
Private Equity / Entrepreneur RepresentationsSituation
Gordian Group was engaged by a prominent hedge fund in a situation in which multiple funds within the organization had holdings in a national cable provider that suffered from excessive leverage and liquidity constraints. The Company and its lenders (including the hedge fund) were contemplating a prenegotiated plan of reorganization to stave off certain operational issues and provide a long-term solution to the Company’s burdensome capital structure.
Engagement
Gordian Group was called on Christmas Eve 2008 by one particular fund within the hedge fund to provide advice regarding the proposed treatment of its holdings in the contemplated plan given concerns related to the intra-fund negotiating dynamics involved. Gordian Group was able to mobilize a team to perform the necessary due diligence and analysis to present its findings to its client on New Year’s Day. Gordian’s underlying work and analysis included a review of plan documentation, credit documents underlying existing and proposed securities; analysis and vetting of the Company’s historical and projected operations and performance; industry research with respect to the company’s markets; and multiple calls with management to perform operational due diligence.
Outcome
Our advice enabled our client to file an acceptable plan of reorganization.