Restructuring Deal of the Year
Boart Longyear
Key highlights
Boart Longyear was a classic case of a great operational business, as a leading global manufacturer of drilling products and services, but the wrong capital structure, with too much debt, making it susceptible to a downturn brought on by COVID-19 disruption in many of its markets.
Boart Longyear wins the 2022 Restructuring of the year as it was able to protect its operations whilst delivering Australia’s largest and most complicated debt for equity swap in the last ten years. Financiers swapped more than A$1.1billon of debt for 98.5% of the equity and provided US$115m new money to support stability and growth to take advantage of the long-term improving prospects for the industry.
This video provides a great overview of the deal and success factors which included:
- Early and open communications with all stakeholders across Australia, Canada, the US and elsewhere.
- A committed management team, led by Jeff Olsen
- Respectful approach to the existing shareholder base.
- Collaboration between key legal and financial advisors across multiple jurisdictions.
Congratulations to our TMA Member Firms
Ashurst, McGrathNicol, FTI Consulting, 333 Capital, Gilbert & Tobin, Clifford Chance, Minter Ellison
Large Turnaround of the year
Probuild Constructions & WBHO Constructions
Key highlights
Congratulations to all involved with the turnaround of Probuild and WBHO Constructions who preserved $2b of construction contracts, created more than $270m in value and saved over 475 jobs in the historic turnaround.
During the Voluntary Administration process, the team managed to continue large scale construction projects to preserve value whilst a recapitalisation plan could be implemented. Roberts Co and SRG Global must be commended for their vision and confidence in working through the extremely challenging situation and building stakeholder support to secure the preservation of so much value. Please see the video for more information.
Congratulations to our TMA Member Firms
Deloitte, King & Wood Mallesons, Roberts Co, Ashurst, Norton Rose Fulbright, SRG Global, Herbert Smith Freehills, Johnson Winter & Slattery
Mid - Size Turnaround of the Year
Rail First Asset Management
Key highlights
Anchorage Capital Partners identified Rail First Asset Management (the market leading vertically integrated full-service rail freight lessor of rolling stock assets focussed on the intermodal sector) as an unloved, underperforming subsidiary of a global entity. Anchorage acquired Rail First in 2020 and immediately implemented a comprehensive and sustainable operational turnaround and growth program, which as the video shows, included:
- Reinforcement of the management team
- Significant investment in systems, people, new assets, capex upgrades and maintenance
- Implemented an efficiency program across all sites
- Reset customer contracts and terms
- Developed “Australia Made” build to lease program
- Building a high-performance business development team to grow sales and margins
- Implementation of a globally benchmarked ESG strategy.
Over two years, EBITDA improved from $29m to $53m, EBITDA margin from 51% to 78% and asset utilisation from 65% to 90%. Anchorage Capital Partners sold to a consortium of global infrastructure investors in 2022 delivering ~4x invested capital and an IRR of over 60% demonstrating the success of the sustainable turnaround and growth program delivered under Anchorage ownership and setting the business up to pursue further growth opportunities.
Congratulations to our TMA Member Firms
Anchorage Capital Partners as well as their advisors well as their advisors Gilbert + Tobin, PwC Australia, Oliver Wyman, Teneo, Rothschild & Co and Aon
Small - Size Turnaround of the Year
Tourism Adventure Group
Key highlights
To quote from Nick Edwards in the attached video “TAG had a quintessentially COVID problem, there were backpackers and then there weren’t any backpackers”. Through voluntary administration, TAG and its advisors worked closely with key stakeholders, including landlords, lenders and employees to build a stable platform that the company could use to build on once backpackers returned. This collaboration enabled the company to survive, and it is now able to make the most of the open borders, with hostels full and bookings pipeline back to pre-COVID levels. A great turnaround success story.
Congratulations to our TMA Member Firms
Hamilton Locke, Ankura
Allegro Funds & TMA Australia Turnaround Case Competition winners
1st Place
“CRGM”
Christina Ruiz – KordaMentha (pictured below)
Jordan Galante – KordaMentha
Stewart Marsden – 333 Capital
Henry Cunningham – (On sabbatical)
2nd Place
“TRANSFORMATION CAPITAL
Jenny Xia – Citi
Jake Knight – FTI Consulting
Henry Lister – FTI Consulting
Georgia Dillon – FTI Consulting
Audrey We – MA Financial Group
3rd Place
DOUBLE J & ME
John Beibly – IFM
Melinda DeBeck – CBA
Eugenie Chung – Dentons
Jonathan Kim – PwC
