Designer & Manufacturer of Mobile Accessories: Liquidity Management, Lender Relations & Refinancing
- Migration of end-user demand to new channels required a strategic shift and investment in new channel partners and new products.
- Client anticipated a covenant breach and possible liquidity tightness during a critical point in the selling season and product development cycle.
- Armory helped the CFO develop a 13-week cash flow and collateral forecast, and confirmed liquidity would be tight but manageable.
- Conceived a proactive communication plan to initiate dialogue with lender and prepare for waiver/amendment negotiations.
- Worked with management to finalize its new business plan and craft a narrative regarding its new business strategy.
- Supported management’s operational restructuring initiatives.
- Advised CFO through discussions with lender regarding waiver/amendment need.
- As lender signaled desire to be taken out, initiated contact with ABL lenders.
- Successfully managed timely refinancing of revolver to not only meet seasonal working capital needs, but also support cash outlays for new products and inventory investments in new channels.
- Company continues to rely upon weekly liquidity forecasting and management tools as it implements its new business strategy.