Better Outcomes
Gresham Considine
Situation
This case involved a European specialist pump manufacturer with €200m of debt operating in 20 countries across the world. Productivity and margin issues resulted in losses and cash strain. The European banking syndicate had lost confidence in the business and its management and individual banks were on the verge of withdrawing facilities.
The Management Team and the HNW Shareholder were also in conflict.
Intervention
We initially worked with management to develop a coherent plan to present to the lender group, detailing the issues, the impact on performance, a timetable and actions to be taken to address the problems and the external support the business would engage help implement the required changes.
The recovery plan, which included disposals of parts of the business and rationalisation of product lines, was used to provide clarity and obtain buy-
Advisors were engaged to build a detailed route map to implement and deliver the recovery plan.
The new strategy and recovery plan for the business provided the mechanism for the Management and Shareholder to resolve their previous conflicts which provided additional comfort to lenders.
Outcome
Following the initial 3 month “standstill” period, the lenders agreed to refinance facilities to provide a stable platform for the medium term element of the recovery plan to be implemented.
Cost reduction programme and business rationalisation was successfully delivered and a revised longer term financing package was put in place allowing those lenders wishing to exit to be repaid in full.
Nature of Support
Board Support
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Stakeholder Management
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Operational Restructuring
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Financial Restructuring
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Case Details: £350m European Pump Manufacturer
Case History