Turnaround and Workouts

MinterEllison’s lawyers are all too familiar with the potential damage wrought by a formal insolvency appointment and have substantial experience in the use of informal mechanisms to allow a business an opportunity to achieve a turnaround or address an unsustainable debt structure.

Our work can involve negotiating standstills with major creditors, promoting and implementing a debt for equity swap or promoting a creditors' scheme of arrangement, amalgamating businesses or funds, refinancing debt or accelerated asset sales. At the same time we ensure that directors comply with their duties, including potential personal exposure for insolvent trading.

Our clients include major secured creditors and borrowers negotiating with creditors, with the hope of avoiding the need for a formal insolvency appointment.

Environinvest MIS wind up

Acted for the secured creditor (CBA) and the receivers and managers (Korda Mentha) of the Environinvest Group, including as responsible entity for a number of managed investment schemes.

Acted for Westpac in relation to collapse of BDO

Acted for Westpac in relation to the collapse of the accounting firm BDO in New South Wales and Victoria, including its subsequent merger with Grant Thornton.

Western Metals receivership

Acted for US noteholders on their exposure to Western Metals, and subsequently, for the receivers and managers (PricewaterhouseCoopers) of the Western Metals group. Western Metals was then the fourth largest mining company in Australia. Secured debts exceeded $390 million.

Pasminco Group administration, reconstruction and IPO of Zinifex

Acted for ANZ in the collapse of the Pasminco Group of Companies. The group was successfully restructured leading to the IPO of Zinifex in April 2004.

Debt restructure of Elders Group

Acted for the Elders Group in debt restructure negotiations with a syndicate of banks (and consequentially, in the sale of its agricultural services business and managing a staged exit of their forestry business).