Projects - Asset Restructuring
National Buildplan Group Pty Limited
Restructure of tier 2 builder
Summary
- Australia, Construction
- Administrator
- Debts: Financier ($10m), Employees ($4m), Unsecured ($60m)
Issues
- National, tier 2 non-residential contractor with government accreditations
- 132 contracts on foot in various stages (including 5 hospitals for NSW Health). All contracts in a loss position
- 179 staff operated from eight offices across Australia
- Insufficient cash at bank to trade for a week
- AU$10m of bank guarantees at risk. Recovery critical to pay employees
- Principals had terminated all contracts for default
Solution
- Formal debt compromise and recommencement of trading
- Completed contracts to recover bank guarantees without exposing administrators to possible defect liability
- Approached six contract principals (for the profitable contracts, two agreed). Facilitated works on two projects (AU$20m of works completed)
- Negotiated the return of over AU$5m in bank guarantees
Outcome
- Negotiated to reduce creditors’ claims by AU$30m
- Recovered over AU$3m in assets deemed worthless
- Returned 100c/$ to financier and employees, 4c/$ to unsecured creditors (after a 100% uplift on forecast claims)
- Company returned to director