A telecommunications infrastructure company and internet service provider faced recurring financial losses as it expanded its nationwide footprint. As interest rates began to climb, the company's senior lender and majority equity holder lost their appetite to provide further funding. At the time of Novo Advisors’ engagement, the company had just one month of cash remaining, leaving stakeholders with a very short timeline to determine viable solutions.
Novo was retained as the Company’s CRO in October 2022 and it was clear that swift and decisive action was necessary to maintain value. Novo immediately assessed strategies to reduce the cash burn and assumed responsibility for managing liquidity, while exploring options to position the company for a potential sale. After careful consideration, it was determined that a Chapter 11 filing was the best course of action to preserve the Company’s value given the complex and contract-intensive business environment.
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