Restructuring Services Case Studies
Case Study

Social media site winds down business, returns $13m to investors

by Michael Hogan, Alex van Dillen

At A Glance

Challenge

The founders and board were unhappy with the direction the company was taking.

Solution

Wind down the business.

Result

The firm completed an orderly wind-down, resolved all creditor claims and returned $13M to investors.

 

A high-profile social media site raised significant institutional capital. Unfortunately, the founders and board were dissatisfied with the direction of the company’s evolution and elected to shut down the site, wind down the company, resolve all creditor claims and return unused capital to investors.

Having received shareholder approval to do so, the company retained Armanino to take on officer and director roles and manage the orderly wind-down of the company.

In accordance with Delaware statute, Armanino executed the wind-down, communicated with all creditors, settled all open and approved claims, filed all the required dissolution paperwork and final taxes, and ultimately distributed $13 million to the investors.

Download Case Study 

October 01, 2019

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Authors
Michael Hogan - Managing Director, Consulting | Armanino
Managing Director
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