Distressed Business Restructure / Refinance $50m

Distressed Business Restructure / Refinance $50m

Distressed Business Restructure / Refinance $50m

Service

Commercial Property Investment

Industry

Accommodation Operator with Industrial Warehousing / Industrial Land / Residential Land

Client

Private Family Investment Group

Location

NT, VIC

The Challenges

  • Seasonal tourism business with over capitalised accommodation facilities. 
  • Covid had exacerbated excess capacity issues. 
  • Recent turnover of industrial warehouse tenants had placed further strain on traditionally stable cash flows.   
  • Multiple private loans ($11m) at very high interest rates had been taken to bridge cash shortages. 
  • Client was in the workout division of a Major Australian Bank ($33m) that had served formal Demands, threatening imminent appointment of Receiver, with unsecured creditors ($3m) supplying COD only.
  • Inter creditor tensions allowed limited flexibility as all parties sought to preserve security cover.
Distressed Business Restructure / Refinance $50m

Our Solution

Consolidation of 3 separate financiers into one 3 year debt with a local institutional investor.

Clients Result

$50m structured facility allowed for up to $3m in interest capitalisation whilst an orderly scheduled sell down of assets allowed the client to maximise the value of properties with no loss to any lenders or creditors. Avoiding Receivership has preserved significant value for the family.