$500 Million Manufacturer of Bicycles and Fitness Equipment

• Highly leveraged due to acquisitions
• Depressed demand for conventional bicycles
• Lack of product in faster growing niche for off-road bicycles
• Synergies identified during acquisitions were not implemented
• Recent history of losses
• No availability on line of credit
• Key vendors threatening to stop shipping

• Prepared a financial and operational assessment and concluded the Company's plan was likely to fail because it was too optimistic
• Advised BBK's client, the Bank Group, to not provide additional funding because the Company had not adequately addressed the fundamental problems
• Advised the Bank Group that the Company could support their Chapter 11 working capital needs via cash collateral without DIP financing

• Company's bicycle and fitness business units were sold on a going-concern basis through 363 sales
• Bank Group received 100% of their loans
• Unsecured creditors received a 20% dividend