Projects - Asset Restructuring
Asset Resolution Limited
Distressed loan management and corporate advisors
Summary
- Property Finance MIS
- Brisbane, Qld
- Assets under management ($40m)
- Stakeholder claims ($1b)
- Managing Controller
- Managed Public Company corporations requirements
Issues
- Special purpose vehicle established to manage the residual Premium Income Fund (PIF) assets, a distressed property finance MIS with cAU$1b in unitholder funds
- ARL was incorporated with seven distressed property finance loans with a range of property types and locations as well as three items of litigation
- ARL had over 10,000 elderly investors who has lost the majority of their investment
- All assets were non-income producing or suffering a loss
- Active disputes between the investors and the previous asset managers
- ASIC was investigating the affairs of the company
- Independent board appointed as ‘caretakers’
Solution
- Managed back office, secretarial, accounting, forecasting, share registry and specific assets strategy, with a mandate of exiting all assets within 24 months
- Established framework to communicate with shareholders
- Assisted with managing litigation assets to maximise recovery
Outcome
- Facilitated over AU$30m in asset recoveries
- Managed all aspects of the operation and reduced costs by cAU$1m pa
- Returned $X of capital to shareholders
- Completed assignment and returned management to Board with AU$13m cash at bank and no residual assets to manage