Urban Media Case Study
Urban Media (UM) was formed in 1998 as a next-generation Onsite Service Provider (OSP). Within two years, the company had raised $130 million in equity and debt to provide telecommunications infrastructure to office buildings throughout the United States. Competing directly with companies such as Allied Riser and Cypress Communications, UM expanded rapidly to bring integrated voice and data fiber to offices in ten regional markets which allowed a host of e-business services and applications including free broadband connectivity for small and medium-sized companies. However, by early 2000, UM fell victim to the intense contraction of the telecommunications market. Not yet producing revenue, and unsuccessful in continuing to raise operations capital, the company faced possible bankruptcy. Professional advice was greatly needed.

Why DCI?
Dan Schryer was hired by the senior debt holder to provide professional guidance in assessment of options and for a complete analysis of the situation. DCI had the unique combination of traditional high-tech sales experience coupled with vast transactional commercial real estate expertise. This is an excellent example of DCI's target market: companies that have significant intrinsic value that are too complicated or too small for traditional investment banks.

The Details:
Given the economic climate of the time and the complexity of the company, Dan determined a sale of UM as a single entity was unlikely. Instead, after comprehensive analysis, he divided the company into three saleable divisions: switch sites, building access rights and loose assets. Implementing what is now DCI's proprietary marketing program, and after complex negotiations, the communications facilities were sold to Comcast, Bell South, AT&T as well as individual landlords. Building access rights, including installed fiber, were sold to Netcarrier and others. The remaining assets were sold in a carefully managed process to ensure the best value was received for the creditors. DCI's extensive contacts in the communications industry enabled UM to receive an average of twenty times what would have been received if the assets were sold at auction.

Challenges and Results
Challenges:
To keep the company out of bankruptcy.

The Results:
The company was able to avoid bankruptcy through the efforts of DCI, which saved UM considerable time and money. Achieved in part by linking asset sales with the restructuring of lease agreements, DCI created a win-win situation for everyone involved. Landlords got new, credit-worthy tenants and UM creditors were saved from further financial liabilities in connections with lease guarantees. DCI brought in over $10 million which far exceeded the original estimated value of one to three million dollars.