Apple Capitol Division: Phoenix Management Services, Phoenix Capital Resources Client Apple Capitol owned and operated 25 Applebee's restaurant franchises in several Mid-Atlantic states with aggregate annual revenue in excess of $35 million. Problem Significant losses, a poorly conceived capital structure and considerable corporate governance challenges had led the Company into a default with its secured lender and Franchisor. When Phoenix was hired, loan and franchise payments were more than a year in arrears. In addition, a seller note had recently gone in default. Each member of the Board of Directors had personally guaranteed some portion of the debt. There was no consensus as to who was actually on the Board or when the Board had last met, as two separate groups each believed they com

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