SOLIC Capital Advisors’ credentialed professionals have multidisciplinary backgrounds with extensive technical expertise in restructuring and investment banking in specialized industry sectors. Our professionals work closely with clients to determine the optimum solution in both growth-oriented and distressed situations. Click below to view representative case studies of work performed by SOLIC professionals by industry sector:
Based in Atlanta, GA, Project Time & Cost, Inc. (“PT&C”) is a leading provider of cost engineering and forensic consulting services. The Company provides an extensive array of cost estimating, scheduling, project management and risk assessment services for construction, environmental remediation and nuclear facility projects and forensic engineering services in connection with losses arising from damaged property. Client base primarily consists of federal agencies that are responsible for large, complex construction and environmental projects as well as insurance companies with significant commercial and residential property portfolios. SCA professionals engaged as exclusive financial advisors to explore various capital and strategic alternatives including the recapitalization of the Company. SCA professionals worked closely with the Company’s shareholders and management to identify various liquidity and recapitalization alternatives. In positioning to a diverse group of potential acquirers, SCA professionals successfully highlighted (i) the unique growth opportunities in providing cost engineering and forensic consulting services to the Federal government and the insurance industry as well as (ii) the Company’s leadership position within its core markets.
Protocol Communications, Inc. is an integrated direct marketing Company serving businesses in the combined areas of direct marketing, data and production services, lead management solutions, contact centers, and media replication and fulfillment services with $18 million of EBITDA. SCA professionals were engaged by the Company’s holders of $115 million of senior secured notes to evaluate capital structure alternatives, various operational restructuring scenarios, and the Company’s short and long-term financial plans. SCA professionals successfully negotiated with subordinated debt holder a debt to equity conversion, and in January 2006, the Company emerged from bankruptcy with $85 million of senior debt with the senior lenders owning 58% of the Company’s new equity.
Sarcom, Inc. is a leading mid-west information technology services and solutions provider to business enterprises, primarily Fortune 1000 and 2000 firms, and government agencies throughout the U.S. The Company provides its clients with IT consulting, implementation and operations services across the IT continuum. SCA professionals initially served as financial advisors to senior secured lenders, leading a capital restructuring with a debt to equity conversion. Upon achieving control, SCA professionals served as stakeholder representative overseeing the operating restructuring and ultimate exit transaction.
One of the 10 largest temporary staffing firms in the industry, with annual revenues in excess of $1.5 billion, more than 300 offices located throughout the U.S., and over 10,000 customers. Company acquired the stock of a leading provider of temporary staffing services to the light industrial and clerical sectors of the U.S. staffing industry. The acquisition allowed the Company to expand its geographic market coverage in the U.S., gain new client relationships, and acquire new management talent critical to continuation of the Company’s rapid growth. SCA professionals acted as exclusive buy-side financial advisors on the transaction.
Engaged by Bijoux Terner, an operator/licensor of retail boutiques. SCA professionals provided a review and assessment of the Company including: cash flow and liquidity requirements, financial performance and forecast, competitive position, viability of the Company’s business plan, and debt transaction documents. Also provided an assessment of the Company’s restructuring alternatives (including valuation analysis, strategic alternatives determination, and capital structure modifications) and assisted in negotiation and execution of same.
The Hartz Mountain Corporation manufactures, distributes and markets pet supply products in a multitude of distribution channels including toys, health and beauty and OTC health remedies with revenues of $350 million, senior debt of $90 million and sub-debt of $75 million. SCA professionals retained by the Company to review their short and long-term business plans and amend the existing credit agreement with the Company’s senior secured lenders. SCA professionals’ recommendations were all ultimately approved by senior and subordinated creditors, and provided significant flexibility for the Company to implement its operational and strategic plans.
Served as financial advisor to the unsecured creditors’ committee of Heartland Automotive Services, Inc., the largest franchisee of Jiffy Lube service centers, which operated approximately 440 quick-oil-change stores in major markets. SCA professionals served as financial advisor to the unsecured creditors’ committee. SCA professionals orchestrated the final plan of reorganization, including negotiation of oil contracts, franchise agreements, senior lender credit facilities, debt-to equity conversion and new money from equity sponsor. The Company subsequently emerged from Chapter 11.
Loehmann’s Holdings, Inc. is the nation’s leading specialty retailer of well-known designer and brand name women’s fashion apparel, accessories and shoes. SCA professionals engaged by private equity group as its buy-side advisor in connection with the acquisition.
Nationwide Warehouse is a multi-site furniture retailer of upholstery, bedding, case goods and other accessories. The Company attracts customers through event-driven advertising that positions the Company as a liquidator, warehouse spaces without built-out showrooms as retail outlets, and a “cash and carry” business practice which reduces the risk of uncollected receivables. SCA professionals served as financial advisor to the senior secured lender through a restructuring and subsequent recapitalization.
Retained by Bosque Power Company, an owner/operator of a natural gas fired power plant providing energy and ancillary services to the Texas power market. SCA professionals provided a review and assessment of the Company including: financial performance and forecast, competitive position, viability of the Company’s business plan, and senior debt transaction documents.
SOLIC serves as financial advisor to Energy Future Holdings Corp. (the parent of TXU Energy, Luminant Generation, and Oncor Electric), a $6.2 billion revenue / $33 billion asset power generation and downstream delivery company, pursuant to the authority delegated to and under the direction of the Chairman of the Board and its disinterested directors. Energy Future Holdings at the time of its Chapter 11 filing was capitalized with in excess of $40 billion of debt and $8.0 billion of equity and sought to retain SOLIC because of SOLIC’s recognized expertise and extensive experience and knowledge in providing restructuring and financial advice in connection with distressed companies. SOLIC’s services include but are not limited to, review of its contemplated plan of reorganization, intercompany claims, financial elements of tax related issues, financing proposals and future financing needs, and other such restructuring matters as required and agreed upon.
Pasadena Tank Corporation (“PTC”) is a closely-held, family-owned business and a leading provider of engineering, fabrication and construction, and repair and maintenance services for aboveground storage tanks (AST). The Company provides these services for customers that produce, process, store and distribute petrochemical products throughout the world. The Company entered into a definitive agreement to merge with a HMT Inc., a portfolio company of a private equity investor, which provides a suite of products and services to the AST industry through product sales, inspection, repair and maintenance, fabrication, engineering and design, coating and lining. The combination yielded a well-respected, full-service leading supplier to the petrochemical industry. SCA professionals were engaged as exclusive financial advisor and successfully structured, negotiated and closed this transaction.
Varel International manufactures drill bits for the global oil & gas drilling community, as well as for the blasthole mining, industrial, construction and water well drilling communities. SCA professionals were engaged to conduct an initial review and assessment of the Company’s operation, including: (i) assist in development of a 5-year financial forecast; (ii) develop capital restructuring strategies; and (iii) negotiate with senior and mezzanine lenders to amend the existing credit agreement to provide adequate headroom to the Company during the recovery period.
GMAC ResCap was the second largest independent residential mortgage lender in the U.S., originating first and second lien residential mortgage loans through a nationwide network of retail offices, direct lending centers and internet sites. SCA professionals were retained to create and execute a plan to mitigate the negative impact caused by the downturn in the subprime and home building market. SCA professionals worked with management to create and execute a detailed risk mitigation plan. Managed total aggregate exposure in excess of $15 billion including the orderly liquidation of the largest mortgage warehouse lending portfolio in the U.S. SCA professionals specific tasks included:
- Creation of a 70 person special assets team;
- Development of collateral monitoring and exposure management systems;
- Assistance with respect to the loan sale execution process responsible for disposition of over $3 billion of mortgages; and
- SCA professionals negotiated and implemented bankruptcy strategies associated with maximization of value of distressed debt in connection with the largest subprime origination and homebuilder bankruptcies.
Green Bank is a national bank headquartered in Houston, Texas that focuses on the commercial and private banking needs of middle market businesses and individuals. SCA professionals engaged as financial advisor in closing an aggregate $100 million private placement of common stock of the Company with several independent investment firms. The new capital will be used to expand current operations, as well as to pursue growth opportunities, including bank and branch acquisitions, structured transactions and FDIC-assisted transactions.
SCA professionals were retained by investors and appointed by the bankruptcy court to manage SageCrest II, LLC, a $750 million hedge fund operating in Chapter 11. SCA professionals were responsible for management of the fund including overall responsibility for performance improvement of operating assets (three hotels, a condo development, a golf course among others) in addition to raw land assets, a life settlement portfolio, asset-backed loans and corporate loans. Post-bankruptcy, SCA professionals were retained as Liquidating Trustee and asset manager to run-off remaining portfolio.
SCA professionals were appointed by the U.S. Bankruptcy Court for the Northern District of Illinois as financial advisor to the estate of Sentinel Management Group, Inc., a $1.5 billion cash management firm, reporting to the court-appointed trustee. SCA professionals assisted the trustee and outside counsel in: (i) the operation and management of the estate; (ii) identification and collection of all electronic and hard‐copy data; (iii) performing forensic analysis of historical trading, financing and customer account activity; (iv) tracing and identification of fund assets and development of accounting; and (v) solvency and other financial analyses in support of legal action brought by the trustee against third parties. In addition, SCA professionals participated in presentations of factual information and analyses to the creditors’ committees and regulators, including SEC, CFTC and NFA. SCA professionals submitted declarations in support of litigation and will serve as testifying experts in current and contemplated litigation against third parties.
Taylor Bean & Whitaker Mortgage Corporation was the nation’s largest independent residential mortgage originator, headquartered in Ocala, Florida. The Company serviced $80 billion of mortgage loans and originated approximately $40 billion of mortgage loans. An SCA professional served as Chief Restructuring Officer and other SCA professionals served as support personnel in connection with the Company’s Chapter 11 bankruptcy filing. SCA professionals coordinated and directed the administration of the Company’s Chapter 11 case, including assistance with respect to the preparation of bankruptcy schedules, statements of financial affairs and any plan of reorganization or liquidation relating to the Company. In addition, SCA professionals oversaw the disposition of approximately 4,500 foreclosed loans and greater than $500 million of residential mortgages. Post-bankruptcy, SCA professionals continued to serve as Liquidating Trustee and Chief Financial Officer.
Lehigh Valley Health Network (“LVHN”), a Pennsylvania non-profit corporation, includes: (i) three hospital facilities; (ii) nine health centers caring for communities in four counties; (iii) numerous primary and specialty care physician practices; (iv) pharmacy, imaging, home health services and lab services; and (v) preferred provider services. SCA professionals were engaged as financial advisors in connection with LVHN’s consideration of various strategic alternatives including a proposed partnership, merger, affiliation, or acquisition transaction with Greater Hazleton Health Alliance. Specific activities of SCA professionals included: transaction feasibility and due diligence assessment, quantification of potential merger synergies, development of an integrated financial model, and transaction execution and support.
MedCath Corporation is a publicly-traded, national healthcare provider focusing on high-acuity services and specializing in the diagnosis and treatment of cardiovascular disease. SCA professionals served as performance improvement restructuring advisors, and exclusive financial advisors to evaluate and execute strategic alternatives. Specific services included: setting valuation parameters; development and execution of a disposition plan; development and implementation of appropriate communication strategies; identification of potential buyers; and, assistance in structuring and negotiating transactions. After assisting in the proper positioning of the portfolio holdings, SCA professionals were responsible for the structuring, negotiation and highly successful execution of a series of 14 transactions realizing a doubling of market value over the course of 18 months, with shareholder value appreciating from $7/share trading price to an anticipated distribution of realized proceeds in excess of $14/share.
Regional provider of Emergency Department services with over 20 hospital contracts and 400 physicians. SOLIC professionals were engaged as financial advisor to evaluate potential strategic alternatives, identify prospective acquirers, develop and implement a competitive solicitation process, provide valuation support, and structure and negotiate the terms of the sale transaction, as well as all related physician agreements. After discussions with several leading physician staffing operators, Company agreed to be acquired by one of the largest providers of outsourced physician staffing solutions for hospitals in the U.S.
Retained by Sumner Regional Medical Center, a three-hospital healthcare organization serving eleven counties in the South. SCA professionals provided financial and operating restructuring support, including: (i) an initial review of restructuring alternatives; (ii) operational restructuring focused on performance improvements; (iii) oversight of a Chief Executive Officer, Chief Restructuring Officer and other personnel; (iv) capital restructuring services including financial reporting, negotiation with debt holders; (v) review of strategic restructuring alternatives; (vi) evaluation of appropriate processes to effect capital restructuring event(s); (vii) provision of financial advisory support, and (viii) the structuring, negotiation and implementation of a successful §363 sale transaction to LifePoint Hospitals, Inc.
SCA professionals were engaged by a real estate private equity fund in connection with the restructuring of its majority ownership interests in a joint venture partnership that owns Sunrise Senior Living, consisting of 16 senior living communities in 11 states. On behalf of the fund, SCA professionals led negotiations with the joint venture partner, their representatives, and major financial institutions in connection with transferring minority interest to the fund, replacing the property manager, and amending credit agreements.
Alexin, LLC was a newly organized company, formed by a team of highly regarded aluminum remelt cast house operators, to build and operate a state-of-the-art aluminum remelt billet casting facility near Ft. Wayne, Indiana. SCA professionals were retained by the Company to raise total debt and equity of approximately $40 million to purchase cast house equipment and to fund working capital.
Centis Inc. is a large direct mail company and manufacturer of office supply and human resource products. SCA professionals served as the Chief Restructuring Officer to assist through the bankruptcy and restructuring process. SCA professionals facilitated a series of asset divestitures through §363 sales of the Company’s four operating divisions.
Leiner Health Products was the nation’s largest private label manufacturer of vitamins, minerals, nutritional supplements and the second largest manufacturer of private label over-the-counter (OTC) pharmaceuticals in the U.S. with revenues in excess of $600 million, senior secured debt of approximately $275 million and sub-debt of $100 million. SCA professionals retained by senior lenders to lead in a capital restructuring effort that, through a pre-packaged plan of reorganization, resulted in a 100% claim reinstatement to the senior secured creditors at markedly improved risk adjusted returns.
Tensar Lease Funding Corp. is a special purpose finance vehicle consolidated by Tensar Corporation, a U.S.-based multinational holding Company whose subsidiaries develop and manufacture an integrated suite of construction-related products and services that provide soil stabilization, earth retention, foundation support and erosion and sediment control for infrastructure end-markets. SCA professionals engaged to provide financial advisory services to optimize the Company’s cost of capital, including an assessment of current projection model and business plan, and analysis of capital restructuring alternatives (valuation analysis, debt capacity analysis, and capital structure modifications).
SCA professionals engaged by operator of a major user-fee supported road system in the nation to: (i) review and summarize apparent factors that led to the current financial position of the organization, and (ii) to provide preliminary recommendations regarding areas of immediate intervention and future focus to assist in repositioning the owner to best meet its challenges.
Key initiatives of the SCA professionals included:
- Assessment of immediate capital funding mismatching with proposed critical intervention strategies necessary in support of required remedial actions;
- Identification of strategic plan deficiencies with recommendations for effective and comprehensive integrated strategic, financial, and capital plan balancing;
- Review of key toll revenue categories with case justification made in support of proposed toll revenue increases on certain vehicle class categories;
- Identification of significant cost categories, including a large labor expense, with a directive to realize key cost saving opportunities already identified;
- Evaluation of non-toll revenue contributions with recommendations for non-toll revenue enhancements;
- Review of prior multi-year capital plans with proposed austerity measures to effectively restrict future capital spend until deficiencies understood; and,
- Identification of corporate governance ineffectiveness, proposed structure enhancements and processes, including proposed organizational changes and potential divisional consolidation.
SCA professionals were retained by a bi-state agency owner of major infrastructure to conduct a top-to-bottom strategic, organizational and financial review of the Agency. Some elements of the reviews included:
- Organizational Design and Operational Assessment
- Review and evaluation of organizational design and corporate governance
- Development of line segment revenue enhancement and cost containment initiatives
- Analysis of shared service functionality
- Review of Major Infrastructure Construction Projects
- Forensic reconstruction of historical cost data
- Risk modeling and cost forecasting on entirety of a $10+ billion program
- Implementation of project controls and comprehensive reporting structure to track progress
- Capital Projects Assessment
- Evaluation of features and performance of 10-year capital plan
- Analysis of the effectiveness of execution performance
- Establishment of comprehensive methodology for future planning of capital investment
HQ Global Workplaces was the leading provider of executive office space and associated services and was the largest franchisor of executive office suites in the world with revenues in excess of $400 million, senior debt of $244 million, sub-debt of $125 million and preferred equity of $220 million. SCA professionals represented the senior creditors through a protracted bankruptcy proceeding that resulted in a successful reorganization in which the pre-petition senior lenders equitized their debt to take control of the Company. SCA professionals assessed the Company’s operating opportunities, including branch rationalizations and lease restructuring opportunities and worked in tandem with management to redesign the organizational structure into an entrepreneurial organization focused on P&L responsibility at the branch level. SCA professionals drove management to: (i) sell $20 million of non-core assets; (ii) reject 70+ unprofitable leases; and (iii) restructured over 180 leases on substantially more favorable terms, all as the Company focused on rationalizing its operations.
Post-bankruptcy, an SCA professional served as Executive Chairman of the Board, and provided oversight to the continuing operating restructuring that resulted in EBITDA improvements ($2.4 million to $47 million run-rate). In addition, SCA professionals served as exclusive financial advisors and negotiated the sale of the Company to Regus LPC for $315 million resulting in full recoveries to the holders of pre-bankruptcy secured claims and significant recoveries for the holders of unsecured bankruptcy claims.
SCA professionals were engaged to perform services in connection with reviewing and evaluating the contemplated development of and future prospects relating to 610 Lexington in New York. In addition to evaluating strategic alternatives, SCA professionals provided financial and advisory support, including: assessment of alternatives, opportunities and risks to maximize recoveries related to outstanding credit agreement; alternative use and valuation analyses related to the land; development of potential restructuring/recovery plans; and, implementation of restructuring initiatives including direct discussions and negotiation with creditors, investors, and other stakeholder constituents.
Retained by SunCal Companies, a prominent Southern California real estate developer, as well as DE Shaw, manager of more than $25 billion in investor capital, to engineer a successful restructuring of $500 million of debt across 20 different residential development projects located within the Southwest. The scope of the engagement included an independent assessment of the opportunities and risks associated with the underlying valuations and restructuring alternatives, review of the current debt structure and development of restructuring alternatives, and lender negotiations.
Wilton Partners Tollway, LLC is an operator of seven large “oasis” service areas along the Illinois Tollway. SCA professionals served as financial advisor to the Company in connection with the successful restructuring of its senior secured credit facility.