Conway MacKenzie was engaged by a large Midwestern U.S. church. The client had weekly attendance of approximately 4,000. The church had approximately $20 million of debt that was incurred to build a church complex. The mortgage was obtained when real estate mortgages were very easy to come by. The level of debt undertaken was not prudent. The church also experienced a drop off in attendance due to both the economy and some negative local press.
Conway MacKenzie served as financial advisor to the church, and helped the church analyze its finances and operations.
Conway MacKenzie accomplished the following: assisted the company to develop a short-term cash forecast and a long-term debt service analysis; reviewed forecasts and cost structure and drove cost cuts to reduce the cost structure of the church by 40%; negotiated a forbearance with the bank and sought market opportunities to restructure the debt; renegotiated several notes outstanding with church members; and worked with church’s board of directors related to strategy.