Case Study:
Suntree
Engagement: Suntree
Sonoran's Role: Interim CFO
Situation
Suntree is a private equity backed snack food manufacturer based on Phoenix, AZ. Delays in the company’s new product launch had resulted in liquidity concerns and caused covenant defaults with the senior lender. The board of directors had also decided to make a change with the management team so the company was in search of a new CEO and CFO.
Role of Sonoran
Matt Foster was hired as the company’s interim CFO to (i) manage the accounting/finance department, (ii) liaise with and provide weekly borrowing to the secured lender, (iii) provide liquidity reports to the private equity owner, and (iv) assist the new CEO in creating a restructuring plan for the company. Essentially, Matt’s role was to provide stability until a new management team could take control of the company.
Result
Matt was engaged by the company for approximately five months. During that time, the company hired a new CEO and a new CFO. Matt assisted in the initial restructuring discussions with the senior lender and helped the new CFO transition into the company. An out-of-court restructuring transaction was completed almost one year after Matt’s engagement ended.
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