SUCCESS SNAPSHOTS

Refinancing

Client Description:

$25 million marketing and travel services company
Recent acquisition grew the business over 100 percent from previous year
Integration issues dramatically increased receivables
Excessive acquisition-related debt burden
Liquidity challenges exacerbated by extremely soft travel market due to sustained U.S. economic downturn and the aftermath of September 11

Developed focused receivables collection program and hired incremental management and staff to implement program
Improved billing clarity and timeliness
Implemented prioritized vendor cash disbursement program
Renegotiated contingency terms of original acquisition agreement to defined long-term obligation
Renegotiated integration/transition services agreement based on service issues converting payables to long-term note and generating current "off invoice" credits
Identified and implemented administrative expense reductions

Successfully collected more than 90 percent of the large and heavily-aged accounts receivable balance within a year
Strengthened current accounts receivable cash flow through billing improvements
Eliminated bank over advance
Based on progress achieved, the lender renewed the Company's financing at substantially the same terms as a year earlier