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Restructuring and
Bankruptcy Advisory
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Client:
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Titan Financial Group was one of the largest independent small-loan consumer finance operations in the U.S. The Company served approximately 70,000 customer accounts through 107 retail branch offices located in Georgia, South Carolina and Texas.
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Transaction Summary:
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Brookwood Associates advised Titan, including its private equity owner Richards Capital Fund, on the sale of its Texas assets, as well as the sale of its Georgia and South Carolina assets via Section 363 of the U.S. Bankruptcy Code.
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Transaction Highlights:
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The Challenge – In response to operating losses and issues with its creditors, Titan elected to pursue a refinancing and/or sale of the business. Brookwood created financial models and marketing materials in order to efficiently determine the Company's options. The result of the preliminary phase of work was the sale of Titan's Texas operations.
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Bankruptcy Phase – Despite the divestiture, Titan ultimately elected to file for bankruptcy protection. A transaction needed to happen quickly in order to preserve value. Under tight time constraints, Brookwood marketed the business to approximately 150 financial and strategic buyers. The sale to an industry buyer was consummated within five weeks of the bankruptcy filing.
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Strong Marketing and Result – Brookwood led a broad marketing process that included numerous strategic companies and private equity groups focused on consumer finance investments. The process ultimately resulted in a sale of the Texas assets to Western Shamrock Corporation and a sale of the Georgia and South Carolina assets to World Acceptance Corporation (NYSE: WRLD), two of the leading consumer finance operations in the U.S.
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