CJC Holdings, Inc.

CJC was a Texas-based manufacturer of fine jewelry and scholastic products formed through a leveraged buyout. As a result of financial problems among its customer base, an ill-fated venture into direct marketing and its highly leveraged balance sheet, CJC began having difficulty meeting its debt repayment terms. CJC's capital structure was very complex, involving five tranches of debt (secured and unsecured, on and off balance sheet) and three tranches of preferred stock. Gordian Group was engaged to help rationalize the company's capital structure.

Gordian Group participated in the operational restructuring of CJC's fine jewelry business, the reorganization of CJC's capital structure and ultimately, M&A transactions involving its class ring and fine jewelry divisions. The operational restructuring, debt restructuring and M&A transactions involved numerous issues and negotiations among the company and its various creditor constituencies, including:

• Maximization of the overall value of the company

• Board-level determinations of values and appropriate reorganization strategies in the context of opinions delivered by Gordian

• Allocation of value among various constituencies

• Operational issues involved in separating the different divisions

• Valuations of various owned licenses and trademarks

• Developing licensing and trademark sharing agreements among the divisions so they could be separated

Gordian Group was instrumental in all aspects of the CJC restructuring.