Balancing the risk profile
The 2007 financial crisis devastated moving and relocation company SIRVA, forcing it to file for bankruptcy protection. Management had failed to adequately address a rapidly growing inventory of unsold homes, and had not properly integrated earlier acquisitions. We acquired a substantial position in SIRVA’s pre-petition bank debt before and during the filing. At emergence, we received a combination of take-back paper and equity, as well as a board seat. We participated in the selection of the new management team and worked closely with the team to improve business strategy with a focus on risk management and acquisition integration. We also guided the company in developing an improved capital structure. Two of our senior executives continue to serve on the company’s board.