Orion Telecommunications Corp.

Client Profile
Orion Telecommunications Corp. (‘Orion’ or the ‘Company’) was a major provider of international and domestic prepaid calling cards in the United States, providing telephone access from the U.S. to more than 200 countries. The Company directed marketing resources towards difficult to reach immigrant populations, particularly the large and fast growing Hispanic market.
Situation
As a result of a rapid increase in sales which could not be supported by the Company’s existing capital structure, Orion filed for Chapter 11 bankruptcy protection. Concurrent with the filing, the Company commenced an expense reduction program and operational turnaround.
Solution
SSG was retained by Orion with the mandate of assisting the Company through its court proceeding and evaluating the Company’s strategic alternatives, including a restructuring or a sale of part or all of the Company. Ultimately, a Section 363 sale process resulted in a transaction whereby the senior bank group was the winning bidder, and closed in March 2005.