Why Fidelis
Finance • Capital • Restructure
What I Hear
Current State

Economy

Sales/Operations

Supply Chain

Borrowers

Senior Lenders
Favor restructurings over seeing their debt collapse into insolvency (lesser of two evils)

Restructurings
Must have positive cash flow, minimum debt service, improvement of collateral position
CEO/OWNER – What keeps me up?
Companies are not alone • It has been a tough three years
Losing Traction:
Liquidity:
Company Life Cycle
Where are you on this curve?
Even hard-working business owners with long-standing success can stumble. All businesses hit Crossroads at various times and get stuck. Sometimes this can end of up in Conflict and Crisis. The Distressed Group helps owners re-create value.
Working Capital
What happens when things go wrong.
Warning
Causes
Results
Crossroads – Re-Creation
Challenges to Re-Creating Value
Fidelis helps you tell the story and creates 3 rd party verification
Why Fidelis?
Who is our Customer
Industries: manufacturing, distribution, retail, hospitality, service and real estate
Situations:
- Working capital shortfalls
- Operational issues
- Supply chain interruptions
- Main customer / supplier issues
- Restructuring debt/equity
What makes us Different
Lenders … think of Fidelis when
Underperforming creditors pose a risk – they are at a crossroads
- Weakening Collateral
- Weakening debt coverage
Borrower seeking a transaction:
- Acquisition
- Refinance
- Sub-debt/mezzanine
- Sale/ownership transition
Early Warnings/ Borrower
Early Warnings
Borrower disciplines needed
Success Stories
$15M Manufacturing Company:
Challenge: Losing Money due to recession; payables past due; senior lender over-advanced
Solution: Negotiated stand-still with lender; allowed for successful sale of company
$200M Hospital Group:
Solution: Created interim financial plan to bridge to solution; Acted as interim CTO to transition solution to billing issues
$8M Furniture Retailer:
Challenge: Recession caused losses; SBA lender threatening foreclosure
Solution: Created interim plan and negotiated stand-still with lender, allowing for sale of stores
$30M Food Importer and Distributor:
Solution: Assisted company in creating plan and negotiating new loan covenants
$12M Multi-level Marketing Company:
Challenge: Sales declining 2% per month for previous 18 months; lack of capital
Solution: Worked with new CEO to create action plan to arrest sales growth and return to profitability
$25M Furniture Manufacturer:
Solution: Stabilized creditor situation; allowed for sale of company; negotiated consensual restructure of unsecured debt to allow sale of company
$20M Flooring Distributor:
Challenge: Company over-leveraged and couldn’t meet debt service
Solution: Created interim plan and negotiated stand-still with lenders and creditors, allowing company to hire investment banker
$100M Manufacturing Company:
Solution: Worked with owner to bridge credibility gap with senior lender, stabilize cash flow and bring in additional capital
$60M Shoe Designer / Importer:
Challenge: Continuing Losses; Unsecured creditors significantly past due
Solution: Assisted CEO and CFO in revitalizing relationship with senior lender, created 18 month plan to support additional capital from equity investor
$20M Flooring Distributor:
Solution: Created interim plan and negotiated stand-still with lenders and creditors, allowing company to hire investment banker