Review

Adjust

Transform

Restructuring and business distress

There is no one-size-fits-all solution to an underperforming or distressed business. The goal is to deliver the best possible results for all stakeholders.

We focus on strategies that help distressed businesses and creditors to recover, restructure and avoid to the extent possible or minimise the fallout of formal insolvency.

From early turnaround and workout strategies to cross-border restructurings and complex corporate insolvencies, our specialist advisers work cooperatively with financial institutions and creditors, liquidators, administrators, receivers and other professional advisors to provide a seamless and integrated service.

Knowledge and expertise

Mitigation
Credit risk
Restructuring
Pre-insolvency
Insolvency

Mitigation

Corporate finance and debt enables your business to grow and deliver your business goals.

We provide solutions to help you: identify, negotiate and obtain the right structure for your business; understand your rights, obligations and security undertakings; understand pitfalls; risk mitigation strategies, training, procedure development, and use of risk management tools; and reviewing contracts, negotiating terms and seeking variations.

Credit risk

Knowing when you or your debtors are starting to pose a credit risk requires sensitivity and a knowledge of the regulatory rights.

We can help you effectively understand your rights and start processes to protect and recover outstanding debts and securities.

We provide solutions across the full risk spectrum and the full lifecycle of credit risk:

Personal Property Security Act (PPSA)
Distressed debt
Security reviews
Security enforcement strategies and implementation.

Restructuring

Restructuring or turning around a business threatened by operational or financial difficulties will always benefit shareholders, creditors, debtors and other stakeholders.

Where a business is under stress, our focus is on taking steps early to address the under-performance and developing an achievable recovery plan and strategy that restores stability and value to the business, shareholders and its creditors.

We provide solutions across the full risk spectrum and the full lifecycle of a reconstruction or turnaround:

Financing, creditors and securities assessment
Shareholders / stakeholders engagement and negotiation
Analysis of viable options, including appointing external administrators
Director risk and insurance issues
Reactive change management and business structuring, including employee relations and industrial relations
Market disclosures
Contract management and renegotiation – customer, procurement, supply chain
Media scrutiny and defamation
Litigation

Pre-insolvency

In many cases, proactively identifying and addressing the underlying causes your business's financial troubles significantly increases the chances for business recovery.

We can help you with your creditor management and devise a tailored strategy to best protect your business from insolvency and formal debt solutions.

We provide solutions across the full risk spectrum and the full lifecycle of pre-insolvency:

Risk identification
Regulatory processes and insolvency options
Appointment provisions and challenges
Trading issues
Governance and directors duties and liabilities
Forensic investigations
Preservation of security interests
Default triggers
Asset sales and other M&A options
Litigation advice and strategy

Insolvency

Where no viable recovery option is available for a distressed business, various insolvency processes are available

Our experienced insolvency practitioners work with banks, business owners and directors, creditors, investors and regulators to implement strategies that maximise returns for all affected parties. We focus on protecting creditors’ interests, identifying strategies to maximise realisations, managing claims and, where appropriate, pursuing recoveries.

We provide solutions across the full risk spectrum and the full lifecycle of a reconstruction or turnaround:

Crisis management, risk allocation, insurance, litigation
Financing, creditors and securities assessment
Shareholders / stakeholders engagement and negotiation
Dealing with regulators and external investigations
Corporate crime – insider trading, fraud
Regulatory processes and insolvency options, including Bankruptcy, Liquidation, Receivership, Voluntary Administration
Private owner / director / executive bankruptcy
Corporate governance and directors' duties and liabilities
Employee relations, industrial relations and transitions
Asset and IP fire sales
Media scrutiny and defamation

Experience

Centerbridge Partners: advised the largest investor in Boart Longyear (BLY), to further restructure BLY's balance sheet following their US$345 million recapitalisation in 2014
Cockatoo Coal: acted for Cockatoo Coal and the voluntary administrators on all aspects of the voluntary administration and restructuring
Pluton Resources: acted for the voluntary administrators and deed administrators and liquidators in relation to the reconstruction of the Pluton Resources mining undertakings (A$300m+)
Dick Smith: acted for the voluntary administrators and liquidators in all aspects of the administration
Australian Institute of Professional Education Pty Limited: acted for liquidators appointed to Australian Institute of Professional Education Pty Limited
Littore Wine Group: acted for Rabobank and receivers and managers on its A$120million+ exposure

Brisconnections: acted for the voluntary administrators of the BrisConnections Group of Companies, the entities leasing and operating the Airport Link Tunnel, a suburban busway and East-West arterial airport drive. The group owed $3billion to its banking syndicate and $1billion to equity holders
Viking Industries: acted for ANZ and the bank appointed receivers, McGrathNicol, in relation to the recovery from the Viking Industries Limited Group of Companies of a A$150 million loan
LM Investment Management: acted for KordaMentha as receivers of the LM Managed Performance Fund (in liquidation). This is one of the largest managed investment fund collapses in Australian history (A$800m+)
Burrup Fertilisers: acted for the receivers and managers of the assets and shares in Burrup Fertilisers Pty Ltd. The secured creditor's exposure to the broader Oswal Group of Companies exceeded A$900m
Channel 10: acting for the receivers and managers appointed to Ten Network Holdings Ltd and various subsidiaries within the Ten Network Group