Originally published in ABFJournal.
A nationally branded pool and spa company with revenues of $25 million annually became distressed after rapid expansion during the COVID-19 era. Legal representation for the company, Lippes Mathias, determined that avoiding a chapter 11 filing was in the best interests of the company and teamed with Second Wind to walk the business through an Article 9 restructuring.
Through the process, incumbent lender NBT Bank was able to exit the distressed credit at par while avoiding legal proceedings. Performing assets of the company were relaunched within a new operating entity, which was shed of previous junior liabilities and non-performing assets.
The transactional restructuring was co-led by Lippes Mathias’ Andrew J. Olek and Second Wind’s Adam Duso.