DirectBuy

Summary

Chief Restructuring Officer

Tulsa, OK

DirectBuy is one of the largest membership-based consumer buying clubs in North America, operating over 100 buying clubs in the U.S. and Canada.

CMA professionals were responsible for negotiating and restructuring DirectBuy’s balance sheet to maintain the business as a going concern.

Key Challenges

Leveraged Capital Structure

Out-of-Court Restructuring

Low Liquidity

Engagement Highlights

Assisted management in drafting the go-forward business plan, an initial restructuring proposal, as well as lead all restructuring negotiations and communications between management, equity holders, the bank group, and the Senior Notes holders and their respective advisors.
Successfully restructured $335 million high yield bonds and a $30 million revolving credit facility in an out-of-court restructuring;
Senior Notes were converted to equity and new payment-in-kind toggle-notes were issued.
The Revolver‘s maturity was extended, and its covenants were reset in-line with the Company’s projected performance.
Created and monitored the Company’s 13-week cash flow and built the Company’s comprehensive business operating model.
Assisted in securing and negotiating incremental financing to stabilize the business.

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