Troubled Debt Restructure for Major Affiliate TV Station
While working for a major regional bank, the Inglewood professional led a multi-bank group in the conversion of debt to equity (a troubled debt restructure) for a large market television affiliate station. Prior to the assignment, the cash flows of the business experienced a significant drop due to external factors, resulting in the drop in value of the station from $70 million to $23 million. The bank loan was $40 million. As part of the restructure, the management team was replaced and the new management increased revenues and cut costs, resulting in a significant improvement in EBITDA and business value. Within 2 years the station was sold for well over $70 million, resulting in full recovery of the lender's original debt plus a 12% return on the lender's investment.