Need some expert help! Been asked by nervous lenders (who are a medium sized non-traditional bank group) to prepare summary of strategic options for a business that has started missing loan covenants. No specific details given from lenders other than "give us your plan and options".
From a lenders perspective, need some help understanding what would be expected from a business presentation. I presume options could be (in order to pay down some or all of the debt):
1. Raise private equity
2. Sell division of business
3. New loan from ABL (securing AR) + equity raise (realize current lenders wouldn't agree to ABL taking a position)
Are there other options (i.e. mezzanine + some other loan) or something not mentioned that could be reasonable to current lender? What sort of quantitative analysis would be expected as part of the scenarios and preso?
Any input appreciated, I'm on the corp accounting side but haven't had much experience preparing analysis for this type of presentation and only given 2 days to put together. Business running 2-3% EBITDA, $200M rev, negative profit. Decent management and difficult industry (telecom).
The company should probably hire a turnaround and restructuring professional for this IMO.
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