Removed $120 million of contingent liabilities from the balance sheet and ensured company profitability.
Focus Search Partners’ interim CFO, an experienced media and entertainment industry veteran, was retained by a VC-backed streaming service to stabilize its increasingly dire financial situation and stem staggering losses. Additionally, the maturity date of a $20 million mezzanine loan was looming, and the company didn’t have the means to cover the loan’s sizable balloon payment while remaining solvent and operational. Simply put: they were running out of cash and time.
With just three months to ascertain the best path for the company, before the mezzanine loan payment was due, the board and executive team realized that Chapter 7 or 11 restructuring was the likely outcome for the business. Our interim CFO quickly realized that this strategy would not yield a sustainable business post restructuring, so the company moved forward with a different plan.
Leveraging his expertise, Focus Search Partners’ consultant guided the company’s exit from its loss-making business segments; more importantly, he established a new focus for the company to be half the size but cash flow positive. He had the practical knowledge, confidence, and charisma to execute a creative solution; partner with and communicate effectively to the company’s board, CEO, and team; gain consensus; and quickly develop and execute the strategic plan.
Removed $120 million of contingent liabilities from the balance sheet
Forecasted $10 million EBITDA for 2021
Saved 200+ jobs