Description

What happens when there is ongoing material business underperformance, financial covenants are broken, and cash is becoming constrained? How do independent sponsors and capital providers navigate these situations? 

Join this in-depth conversation as our panel discusses: 

• What is the sponsor expected to be doing to help fix the situation? 
• When should discussions about management replacement start to occur? 
• When should discussions about blocking management fees start to occur? 
• What if the capital providers are asked/need to put in more capital to support the business in the short/medium term?
• What should the expected impact be on the sponsor’s economics with the new capital injection
• Can/should the SBIC/equity investors be able to displace independent sponsors if they are not spending the effort or acting in good faith to help the business improve? 

These are critical discussions that every independent sponsor needs to have answers for. In addition, our panel will walk through specific situations that they’ve been involved in and provide examples on how they looked to rectify the situation.

Panelists

Moderator: Tom Kesoglou - Ice Miller 

Brian Yoon - Corbel Capital

Spalding White - Route 2 Capital

Lane Wiggers - Argosy Capital