Sues and Angart

ENGAGEMENT DESCRIPTION


Pocket Communications




Situation Encountered Upon Engagement

When Sues & Angart was hired in June 2010, this start-up company had exhausted all but $2 million of its $125 million start-up capitalization, and was still hemorrhaging $2.5 million of cash per month. The company was in the early stages of a sale process. The company had missed its June lease payments on over 400 cell tower and retail sites, and was forecasted to run out of cash by mid-July, long before the sale process could be completed.



Major Actions Taken by Sues & Angart

1.  Developed and implemented a proprietary integrated cash management process, including cash flow forecasting, disbursements management and control, and

     reporting.

2.  Implemented the bankruptcy model with creditors on an out-of-court basis, saving $6 MM of cash.

3.  Designed and negotiated an agreement between the company, the secured lenders, and over 100 lessors, generating $4.5 million of cash flow, via lessors

     forbearing on lease payments totaling $1.5 million, and a secured lender infusing $3.0 million.

4.  Assisted the company‚Äôs investment banker, counsel and management with the sale process.

5.  Negotiated the buyout of over 80 leases and contracts not assumed by the buyer.



Key Results Obtained by Sues & Angart

1.  Improved cash flow $7 million and obtained $3 million of new debt, allowing the company to operate long enough to complete the sale process.

2.  Completed the sale of the business at the end of October.

3.  Repaid $33 million of secured debt in full.

4.  Saved in excess of $2 million via creative and successful negotiation of lease and contract buyouts.

5.  Paid unsecured creditors in full and made a significant distribution to equity.