Alexander Gallo

Summary

Financial Advisor

Alexander Gallo provides court reporting and litigation support services. They have the largest group of court stenographers focused on law firm deposition market operating out of 60+ offices around the country.

CMA was engaged as Alexander Gallo’s Chief Restructuring Officer and lead the Company through a Chapter 11 Bankruptcy process and post-petition sale process, resulting in a successful §363 sale.

CMA negotiated a sale to the second lien, a hedge fund, who funded payment of 941 taxes and bridged liquidity to a filing.

Engagement Highlights

Distress caused by Alexander Gallo’s acquisition of a larger competitor who had a history of financial problems.
- EBITDA declined and acquisition debt burden caused a liquidity crisis.
- Hedge fund bought heavily into first and second lien debt.
CMA determined a root cause/options analysis and determined:
Litigation business evolving due to electronic discovery, fixed costs too high for revenue stream; acquisition also much worse financially than known.
Liquidity process, significant 941 taxes in arrears, need to restructure office leases.
CMA determined the best course was for the second lien to fund liquidity and 941 tax requirements while bridging to a sale.
In BR virtually all RE and capital equipment leases were restructured.
Hedge fund credit bid second lien to own company and paid out first lien; Company is deleveraged and has greatly improved cash flow.

Alexander Gallo

Summary

Financial Advisor

Engagement Highlights

Sign Up for Our Newsletter