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MCA Completes a Complex Turnaround and Restructuring Project for Personal Transportation Company

By April 21, 2023Insights

MCA Financial Group completed a complex turnaround and restructuring project with its lender client whose borrower in the personal transportation industry had defaulted on a loan due to a sudden decrease in earnings. The borrower provided alternative vehicle rentals in urban markets internationally, with an annual revenue of $250 million and a workforce of 3,000 employees.

The borrower was pursuing a merger with a strategically aligned firm that could inject much-needed additional capital into the company and bring the loan into compliance. The borrower did not present any alternatives to the merger, and the lender was greatly concerned about the significant risk involved in executing the merger. The lender looked to MCA Financial to help advise on the current proposed merger and develop an alternative plan as a backup. MCA Financial thoroughly reviewed the borrower’s financials and operations and evaluated various loan repayment options while working closely with the lender to create an alternative backup plan.

Leveraging our expertise and industry knowledge and working collaboratively with the borrower’s professional team, MCA and its client resolved the issue by innovatively devising a loan term framework and alternative measures to safeguard collateral and successfully execute the strategic merger. Our ability to swiftly evaluate borrower operations, develop collateral protection backups, and grasp the intricacies of a multi-market operational recovery plan proved pivotal in achieving a favorable outcome and safeguarding the lender’s interests.

MCA Financial’s collaborative approach and expertise in devising and evaluating short-term collateral recovery plans were vital in achieving our client’s objectives. Additionally, we achieved positive outcomes for the lender and other stakeholders through our strategic thinking, in-depth industry knowledge, and hands-on approach. The successful execution of this project demonstrates MCA Financial Group’s capabilities in navigating complex financial challenges while delivering value to our clients.