For the Padgett Paper Products Company case you are one of the team leaders.

At the end of session 4, both teams will interact within a role playing representation in
order to make an introduction of the case to the class. The objective is to let the class
know what the situation of the company is, and what will be discussed and analyzed in
session 5.

At the beginning of session 5 the main analysis and discussion will be developed. You
will continue playing the role indicated in order to present a deeper analysis of the
situation and decide over the alternative actions.

During the representation and in the final report your team is expected to aboard the
following “Banker role team questions”:

1. As a banker, how would you evaluate Padgett’s strategy and financial

performance to date? How well has Padgett done? Does the bank have a customer
relationship with Padgett worth keeping?

2. Why should Francis Libris, the banker, seek to structure Padgett’s loan on a “more
orderly basis”?

3. Why does Padgett need a loan? How fast can Padgett repay the loan? What are
Padgett’s prospects for servicing the $7.2 million in debt? How much cash will
Padgett throw off? What could go wrong?

4. What should Libris propose as terms for the new loan structure? What might
Libris recommend to Padgett as remedies for its situation?

5. What other actions could Padgett take to improve the expected long term financial
performance?

Note: Your report should include the final agreement terms if any with Padgett’s
directors, as well as the reasoning for this decision.