Corporate restructuring / turnaround management

Company Renewable energy (publicly listed limited company) 
Project type and duration  Turnaround/MBI; 18 months
Our role  Initially interim CFO, then CEO, then managing partner
Background  When the interim manager went into the company (recommended by banks, appointed as management board member by the supervisory board), there was an acute earnings and liquidity crisis. High risk of insolvency, due in particular to massive risks at foreign subsidiaries. Uncertainty whether credit lines would be renewed. Faltering M&A process.
Remit and results
  • Stabilisation of operating business
  • The write-downs required by the loss-making foreign operations pushed the company massively into debt
  • The required capital reduction was rejected by the AGM
  • A lawsuit for damages against former board members of the public limited company ended successfully with a settlement (almost entire D&O sum insured was paid)
  • Structured insolvency
  • Four months after the opening of insolvency proceedings, a new company took over the assets and staff of the old company

The new company has substantial funding from its principal bank which has an equity stake in the form of a debt-equity swap and the operational business is heading towards full capacity utilisation.