IGI, Inc., a publicly traded company, (AMEX: IG) manufactures poultry, vaccines, pet care and cosmetic products utilizing a proprietary technology.
At the time of SSG’s retention, IGI, Inc. was under SEC, Department of Justice, Treasury and Agriculture investigation; while generating substantial negative cashflow.
SSG initially restructured IGI’s existing senior credit facility with their bank group, through a formal forebearance agreement, in order to allow IGI senior management time to implement their business plan. SSG then delivered a $22 million senior debt facility including a substantial cash flow component and $7 million of sub-debt including warrants for 19.9% of IGI, Inc. Initial offers had begun at $10 million of asset-based senior debt and $7 million of sub-debt/equity for 55%-90% of the Company.