Redback Networks, Inc.

Client

Redback Networks is a leading provider of next-generation broadband networking equipment enabling carriers and service providers to build third-generation broadband networks that can profitably deliver value-added broadband services to consumers and businesses.

Challenge

Redback Networks arranged a pre-packaged Chapter 11 bankruptcy beginning in November 2003. The goal was to emerge solvent in January 2004. The Company required debtor-in-possession financing and post-bankruptcy financing to successfully accomplish this goal. The bank group providing the DIP financing required a crisis manager to be involved with the Company.

Solution

Bridge was retained by Company to be the onsite crisis manager, advising Company executives and officers during the bankruptcy. Working with the Company's senior management, Bridge implemented cash management, accounting, and financial reporting practices which improved the Company's ability to forecast and manage cash flows, remain in compliance with all DIP financing requirements, secure post-bankruptcy financing, and improve ongoing profitability.

Results

Redback Networks succeeded in completing its pre-packaged Chapter 11 case on time, emerging financially stronger and more profitable. The Company started 2004 with a solid balance and appropriate working capital credit facilities in place. Bridge applied best practices to streamline Redback's finance and accounting functions, enabling the Company to enhance profitability through timely and accurate cash management and financial reporting.