MorrisAnderson Interim Management Leads Turnaround

Technology, Media & TelecomLitigation SupportRefinancing & TransactionsTurnarounds & Restructuring

25M

Annual Sales

50M

in Debt

NPI Omnipoint, Traverse City Michigan

Challenge

Cell Phone Service Provider. $25 million in annual sales. $50 million in secured debt. $1 million annual EBITDA. Over 1.1 million service population. Family-owned business.

  • This highly leveraged business had poor financial reporting, weak management and business systems and a strong-willed, entrepreneurial owner.
  • Its debt had reached $50 million and several creditors were threatening an involuntary bankruptcy.
  • Operations, costs and systems were poorly managed.

Solution

  • MorrisAnderson consultant engaged as interim COO.
  • Cut costs, helped convert to new core-business systems, negotiated major creditor disputes, restructured agreements with several telecom vendors and expanded roaming revenue sources by limiting revenue leakage while consolidating pricing and service offerings.

Results

  • The company moved from $1 million annual EBITDA loss to a $1 million EBITDA profit.
  • The core business system upgrade/conversion reduced costs, increased revenue, accelerated invoicing, and significantly improved customer service and operational control.
  • Lender paid down $7.4 million on its debt.
  • Permanent COO was retained.

Contributors