Situation

• Prominent new media platform attracting Chinese consumer interest in international property investment
• Break down in trust between the creative founders and the venture capital investors
• Recent management resignations
• Business rapidly depleting funds
• Shareholder dispute
• Business in distress
   

Actions

• Stakeholder engagement to align interests
• Standstill and mediation commenced
• Proactive PR plan commenced
• Appointment to Chairman of the Board
• Forensic analysis of cash movements and financial variances over last 24 months
• Business review, working capital analysis and options appraisal
• Cost reduction and managed downsizing
• Investment in IP protection
• Negotiated exit of founders management positions
• CEO and Financial Controller appointed
• Equity fund raising plan agreed by all parties
   

Outcomes

• Trading losses mitigated
• New funds raised to fund immediate operational losses and to facilitate growth
• Majority of the founders' shares acquired, while retaining figurehead positions
• Subsequently a sale of business achieved to a listed company