MCA Financial Group served as the financial advisor to a national commercial lender regarding the bankruptcy of a multi-location craft beverage company. The borrower, which operated brewpubs and distributed beer and spirits throughout the western United States, filed for Chapter 11 protection under Subchapter V. The lender engaged MCA to protect the value of its loan, navigate the complexities of the reorganization process, and facilitate a consensual plan during an adversarial restructuring. The aim was to maximize recoveries while addressing the unique Subchapter V process and its regulations.
MCA provided expert financial analysis, examined court filings for accuracy, and assessed the reasonableness of the debtor’s financial projections and short-term cash collateral budgets. MCA’s industry expertise was crucial in demonstrating to the court that the debtor’s proposed plan would unfairly impair the lender’s recovery.
In addition to its advisory role, MCA was approved by the court to oversee an expedited sale process for one of the borrower’s locations, executing a targeted marketing campaign, managing due diligence, and facilitating a Section 363 sale auction. MCA testified regarding the appropriateness of the process and the resulting market evidence on value and buyers.
Despite significant challenges, MCA’s persistence and strategic guidance led to a confirmed reorganization plan that would allow the lender to be repaid in full. The court also approved operational improvements through the appointment of a restaurant consultant at MCA’s suggestion, further strengthening the financial outlook of the remaining business.
MCA’s ability to effectively navigate the court process, manage a successful sale while acting as the lender’s advisor, and deliver expert testimony highlights its extensive expertise in financial restructuring and distressed M&A. Both the lender and its legal counsel recognized MCA’s proactive approach and critical role in achieving a successful outcome.