Debt Restructuring of National Residential and Commercial Builder

The residential and commercial building business was made up of a group of award-winning companies with an established presence nationwide.

Work Undertaken

The business was being over-leveraged due to cross securitised debts across the Group of £300 million.

Appointed by the Board, our Restructuring team undertook a Performance Review of the business to highlight and support the decision to rationalise the business to return it to profitability.

Significant financial modelling was undertaken, and we provided the Board with various options using an Entity Priority Model. The most effective option was downsizing the business in terms of operations and size.

Outcome

We negotiated with all lenders to prove that the Group had a future and could effectively right-size their debts. The team also covered the worst-case scenario by demonstrating what the lenders would receive if the Group went into liquidation.

This was an extremely complex case due to the multitude of lenders involved and the securitisation of debts across the group of companies.

By providing expert advice to the Board, delivering an effective solution, and undertaking lender negotiations, the restructure was successful, and the group of companies continued to trade.