A premium Jewelry company tripped a covenant on its loan with one of the largest US middle market lending banks. The bank (which had been exiting its Jewelry credits for some time) asked the company to work with an advisor to assess its financial condition and to help it to find an alternative lender.

The Stakeholders

• The Client – A $35 million premium jewelry company
• The Lender – One of the largest US banks
• The Turnaround Management Firm – One of the industry’s “finest”
• A secondary lender
• Michael Roth Advisors (MRA)

Case Outcome

• Within weeks, the client and lender received a complete strategic and financial assessment. The multi-point growth plan that was part of the assessment was put into place immediately and gave the clients’ trade partners, internal organization and lenders a renewed sense of confidence in the company. Specifically, the lenders granted the company an extended forbearance period to execute their new plan and to find new lenders.
• The lenders were taken out whole by the new secondary lender.
• The Turnaround Management Firm managing the case saw an initial assessment assignment blossom into a yearlong implementation assignment.
• The secondary lender found a rebounding company in a sector in which it was eager to expand its portfolio.
• Michael Roth Advisors again helped a partner turnaround firm to secure a highly competitive case by virtue of its specialized marketing and sales advisory. The implementation work lasted a full year.

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