DMG Case Studies

The company had defaulted on loan agreement with secured lender. Revenue projections were repeatedly missed and the company had failed to raise additional operating capital.

Initially Diablo Management Group (DMG) was retained in 2001 as advisor to the CEO and Board of Trustees acting to restructure debt and improve cash flow through reduction in operating expenses. This extended the time available for the company to be marketed and sold. DMG subsequently assumed fidicuary responsibility.

1. Buy time with creditors to enable the sale of the business
2. Retain key employees critical to the sale of the business
3. Stay out of bankruptcy
4.  Settle forbearance agreements with secured and unsecured creditors
5. Conduct a sale of business quickly
6. Effectively serve as interim managements of various constituencies
7. Settle more than $50 million in secured lease, secured debt and other operating expenses

• Arranged multiple forbearance agreements with secured and unsecured creditors
• Implemented marketing plan and timetable for business sale
• Settle more than $50 million in secured lease, secured debt and other operating expenses
• Assisted in due diligence/negotiations process with senior secured creditors to achieve maximum value for all assets
• Retained core technology and personnel
• Extended timetable for effective sale of company
• Actively worked with all parties for an amicable settlement of all debts and leases