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Case Solution Outline
-Summary
-Company
-Market
-Product
-Projections
-Options
-Current Capital Structure
-Proposed Capital Structure
-Review

Summary
Objective: To find a mutually acceptable debt structure that will
minimize lender risk while increasing company value.

Constraints: 1) realistic cash flow projections, 2) Bank safety levels
Situation for each Business Group
Bank: Over extended and is in a bad situation. Lending exceeds reasonable levels and is not collateralized or subject to convenants.
A $8 million loan is abnormal for the bank. The companies management does not appear to understand the unrealistic debt
situation, the impact on firm value and impact on the upcoming audit report.

Management: Has unrealistic expectations and a lack of understanding of impact of current structure of firm value.

Company: The company has considerable levels of equity and is not maximizing its financial structure. It is capable of taking on......

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Approximate Word Count: 1171
Approximate Pages: 5 (250 words per double-spaced page)

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