Interim Management Facilitates a 363 Sale

Sante Fe Cattle Co.

Nashville, Tennessee

Challenge

27 restaurant locations (Southern US). $60 million annual revenues. $15 million debt.


  • Location expansion built extensively on build-to-suit leases.
  • Sharply declining revenues resulted in several locations operating with negative cash flow.
  • Company enters bankruptcy while management struggles with reporting and timely financials and projections.

Solution

  • MorrisAnderson engaged as CRO to assist in the implementation of improved financial reporting and projections.
  • Budget delay due to weekly operating losses of $100,000 required immediate resolution.
  • Sale plan implemented quickly to achieve an expedited 363 sale.

Results

  • MorrisAnderson negotiated sale agreement with stalking horse bidder.
  • Cash constraints led to court approval of limited marketing campaign.
  • MorrisAnderson contacted 80 prospective buyers, receiving seven confidentiality agreements and two offers within two weeks.
  • Majority of operating assets and all equipment sold as part of 363 process.
  • Expedited 363 sale process completed within 40 days.
  • Including assumed debt, the Company sold for over $70 million resulting in full pay-out of secured claims totaling $12 million.