Situation

• Under-leveraged and unable to meet banking obligations due to poor post acquisition integration of M&A programme
• Non-core and unprofitable asset spun off by post-restructuring new management via debt/equity swap with senior lender
• Debt repayment obligations squeezing cashflow and restricting business expansion
• Future growth strategy and opportunities in Asia, LATAM and European markets unarticulated
   

Actions

• Management agreement to support non-core activities
• Business focus shift from manufacturing to design, supply chain management and distribution 
• Act as strategic sounding board for CEO
• Streamline business operations, formulate refinancing, investment and execution plan
   

Outcomes

• Sale and wind-down of China manufacturing subsidiary with shift to contract manufacturing for future supply
• Profitable anchoring of manufacturing to US manufacturing subsidiary
• Interest from retail banks and private equity investors