Entrea Capital advised the Global Group on financial restructuring

Entrea Capital advised the Global Group on financial restructuring

Entrea Capital advised the Global Group on financial restructuring

Client: Global Group
Status: Private
Sector: Media (TV)
Revenue: € 6.7 mln
Web: www.globalvision-bg.com, www.globalfilms-bg.com
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Client: Global Group

  • With more that 15 years of experience, Global Group is one of the largest independent producers in Bulgaria. Global Group has produced more than 30 TV shows, more than 300 TV commercials, more than 500 music videos and several short and full feature movies and TV series
  • Global Group is an employer and impresario of the most popular actors in Bulgaria
  • Global Group produced some of the most famous and highly rated TV shows in Bulgaria like Lords of the Air, Star Academy, All You Need is Love, Fear Factor, Bulgaria’s Got Talent, Total Madness, Psychic Challenge, Magnificent Six, Extreme makeover, Russian Roulette and many others 

 

Situation Overview & Solution

  • The Company was experiencing certain cash-flow difficulties related to scheduled loan payments
  • The Company lacked financial management controls and processes in order to ensure financial accountability, checks and balances.
  • The Company used to do all budgeting and forecasting on an ad hoc basis which didn’t allow its management to take informed decisions over time, nor effectively monitor the overall financial performance
  • The Company engaged Entrea Capital to address the above concerns and to make specific recommendations related to operating and process optimization, as well as to target debt restructuring
 
Entrea Capital’s Role and Value Added

  • Renegotiated debt the repayment schedule of the Company with its lenders, bringing it back to profitability within 6 months and recovering top-line growth within 12 months
  • Put in place an interim CFO to design payment approval processes, budgeting, forecasting and other key processes aimed at streamlining operations and providing enhanced visibility into the Company’s financial performance
  • Implemented decisive headcount reduction program and redesigned remuneration structure, linking it to the Company’s performance
  • Successfully implemented an ERP system in 2009 which enhanced the management of the Company’s separate projects, lowered costs, provided quicker information processing and better tracking and forecasting tools
  • Led negotiations to improve standing with banks and secured continued lending for future investment program
  • Advised the Company on an optimal capital structure and helped it strengthen its balance sheet