Deloitte Advises Tully's Coffee During its 363 Asset Sale to Global Baristas

NEW YORK, July 8, 2013 /PRNewswire/ -- The Deloitte Corporate Restructuring Group (Deloitte CRG) within Deloitte Financial Advisory Services LLP served as financial and restructuring advisor to TC Global, Inc. (Tully's Coffee) throughout the bankruptcy process and during its sale of substantially all of its assets through a Section 363 asset sale to Global Baristas, LLC, an investment group led by actor Patrick Dempsey. The sale closed effective at midnight Pacific Time on June 30, 2013.

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TC Global, Inc., operated approximately 47 company-owned coffee shops under the Tully's Coffee brand in the Pacific Northwest and 75 franchised and licensed locations in the US and Asia.  The sale allows Tully's to pay all creditors in full, with a potential distribution to equity, while also continuing operations and maintaining the jobs of more than 500 employees.

Deloitte advised Tully's prior to and after the company filed for Chapter 11 bankruptcy protection on October 10, 2012, a decision driven by historical operating losses at existing locations and high coffee prices. Prior to the asset sale, Deloitte successfully assisted in identifying a Debtor-in-Possession (DIP) loan facility in order to finance the restructuring and bankruptcy process. The ultimate DIP loan solution involved the DIP lender purchasing Tully's future credit card receipts, which allowed the company to continue operating and also pursue an auction of its assets using a Section 363 sale process.

During the restructuring process and around the time of its bankruptcy filing, the company had closed 19 money-losing locations and made reductions in overhead. After Tully's secured the DIP loan, Deloitte conducted an auction of remaining assets. The auction attracted eight bidders and generated final total consideration of $9.2 million (including assumed liabilities), more than double the initial stalking horse bid of $4.3 million.

"We are very excited about the result and the integral role Deloitte CRG played in adding value to the restructuring process. This transaction allows the company to continue operating and providing jobs to more than 500 of its employees, while strengthening relationships with suppliers in the area," said Rob Carringer, principal, Deloitte CRG.

About Deloitte Corporate Restructuring Group
The Deloitte Corporate Restructuring Group (Deloitte CRG) is a leading provider of financial and operational restructuring services, turnaround and performance management, fiduciary services and bankruptcy administrative services to underperforming companies and their advisors, lenders, investors, courts and other stakeholders.

As used in this document, "Deloitte" means Deloitte Financial Advisory Services LLP, a subsidiary of Deloitte LLP. Please see http://www.deloitte.com/us/about for a detailed description of the legal structure of Deloitte LLP and its subsidiaries.  Certain services may not be available to attest clients under the rules and regulations of public accounting.

SOURCE Deloitte