United Kingdom

Formal Restructurings 

Independent executory roles within a statutory process to deal with complex and unusual situations.

What's on your mind?

 

  • Net liabilities or unable to pay debts as they fall due (Insolvency).
  • An unsupportable pension deficit.
  • Cram down potential (e.g. debt for equity swap; debt write downs).
  • Consummating an agreed deal (pre-pack, early exit).

 

Bringing you peace of mind

 

  • We can help businesses use a formal process to perfect or expedite a restructuring or debt for equity swap. A formal process can use a majority vote to achieve the desired result, reducing the likelihood of hold-out positions disrupting the restructuring.
  • Our team has considerable experience of using Companies Act Schemes of Arrangement, Company Voluntary Arrangements and Administrations to reach a commercially viable outcome.
  • We take a practical and pragmatic attitude to issues, applying our extensive technical knowledge of UK and overseas processes to the legal and commercial situations in which we are involved. We work closely with legal advisors to provide options which are legally and commercially feasible.

 

What's in it for you?

 

  • Efficient, pragmatic resolution of complex issues, reducing the time taken and cost.
  • Robust assessment of options and feasibility.
  • Independent practitioners with many years experience to provide creative strategies to maximise value.
  • Tax strategy to minimise tax leakage and therefore improve returns to stakeholders.
  • Formal restructuring solutions are not achievable by management alone but must involve an independent insolvency practitioner.

 

Why KPMG?

 

  • Innovative uses of s.425 Companies Act Schemes (debt compromise process) and Insolvency Act processes to achieve commercially viable outcomes.
  • Highly experienced, objective team.
  • Strong commercial approach allied to extensive technical knowledge.

 

Case Studies

 

  • TXU: power/utilities
    Issue: £3 billion debt
    Solution: administrations/interlinked CVAs
  • Mainsail: structured investment vehicle
    Issue: £894 million debt
    Solution: receivership to execute a restructuring
  • Coltrane: structured debt vehicle
    Issue: £320 million debt
    Solution: receivership to repay secured noteholders
  • Schefenacker: automotive
    Issue: £410 million debt
    Solution: standalone CVA of migrated company to achieve a debt-for-equity swap