Case | HBS Case Collection | September 1998 (Revised December 1998)

Infinity Carpets, Inc.

by Ronald W. Moore and Thomas R. Piper

Abstract

A turnaround expert must determine whether a firm in distress is worth more as a going concern than its liquidation value. If so, the finances of the firm must be restructured in a way consistent with the bargaining power of the holders of the various securities. The restructuring requires a delay in principal repayment, rate concessions, and a debt-for-equity swap.

Keywords: Restructuring; Borrowing and Debt; Financial Liquidity; Crisis Management; Value; Apparel and Accessories Industry;

Citation:

Moore, Ronald W., and Thomas R. Piper. "Infinity Carpets, Inc." Harvard Business School Case 299-014, September 1998. (Revised December 1998.)