NATURE OF ASSIGNMENT:
Primary: Company Services / Restructuring Managment
Primary Industry: Leisure & Service
Company: Hotel and Resort Conglomerate
Situation: Company had little cash, high levels of secured debt. Company was unable to make debt payments, was in danger of being unable to make operating payments, and in default on obligations with hotel franchisors.
Focus Scope: A Focus Professional was engaged by the board of directors to restructure company with aim of maximizing returns for all stake holders by:
- restructuring all debt,
- rationalizing all overhead/operating expenses while increasing guest satisfaction,
- developing procedures for maximizing revenue, and
- renegotiating franchise agreements.
Tasks Performed: Replaced COO and CFO with new personnel, reduced overhead and cost associated with the management of hotels, negotiated with franchisors for time needed to make renovations to maintain franchise affiliations. Filed Chapter 11 and successfully restructured the financial and operational procedures of the company.
Results: The Company emerged from bankruptcy and operated profitably during our Focus Professional's time as CEO.