Tricon Global Restaurants

AmeriServe was an $8 billion distributor specializing in serving the fast food restaurant industry. By late 1999, AmeriServe had grown rapidly through acquisitions financed primarily with debt. At that time, following an ill-advised secured financing, AmeriServe suffered a dramatic decline in trade support, which led to a liquidity crisis and a bankruptcy filing in early 2000.

Tricon is the nationwide franchisor of Pizza Hut, Kentucky Fried Chicken and Taco Bell restaurants, and was AmeriServe's largest customer. Moreover, if AmeriServe had ceased operations due to illiquidity (as was seriously contemplated in early 2000), many of Tricon's owned and franchised stores would have "gone dark" for weeks. To avert this disaster scenario, Tricon provided a debtor-in-possession ("DIP") financing facility to AmeriServe. In addition to its DIP commitment, Tricon had a variety of other potential exposures in the case.

Tricon engaged Gordian Group to assist in minimizing its AmeriServe-related losses and to expedite the bankruptcy restructuring process. Gordian Group advised Tricon with respect to various restructuring options, assisted in the negotiations leading to a sale of AmeriServe to a subsidiary of Wal-Mart and assisted in the restructuring negotiations with the debtor and various creditor constituencies. The case was successfully consummated in December 2000.