Situation

A publicly traded operating software provider became involved in litigation. The company lost certain litigation claims that required it to file for bankruptcy protection and was seeking to reorganize itself and emerge successfully from bankruptcy. At the time of filing for bankruptcy protection, existing senior financial management and other key accounting personnel departed, leaving the company without financial leadership. Due to the bankruptcy filing, sales declined and the company had less than a year in cash.

Solution

An experienced financial executive, now a NextLevel team member, was appointed as chief financial officer to direct and lead the company through its reorganization and restructuring under the oversight of the bankruptcy court. Major accomplishments by the executive in this role included;

  • Successful development of a bankruptcy exit plan, including right-sizing of personnel and administrative costs;
  • Identifying non-essential business operations to wind down or sell to preserve cash flow.

Results

The cash flow runway was extended to three years allowing for the successful sale of a joint venture company in China and, separately, sale of the core operating business to an outside investor group.

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