Distressed Asset Management
A medium-sized family owned vegetable producer was under- capitalized, heavily geared and experiencing difficulties. The financier had set an onerous debt reduction schedule and imposed rigorous reporting requirements. The financier then withdrew support and advised the client to find an alternative financier within a defined timeframe or face foreclosure.
Client Requirements
- Achieve a strategic divestment in a very tight timeframe,
- Manage all negotiations and weekly liaison with the financier, concurrent with the divestment.
Key Activities
- Negotiate with the financier to vary the original Letter of Offer and improve timeframe,
- Represent the family in interactions with the financier, providing the requested reporting and disclosure,
- Arrange a formal valuation and detailed property maps (GPS),
- Prepare a professional Information Package for distribution to potential acquirers,
- Research and prepare a list of key targets,
- Develop a professional marketing brochure and direct mail- out to over 700 parties,
- Develop and place full colour advertisements in key trade and rural publications,
- Liaise with key targets and arranging inspections,
- Negotiate terms on behalf the client and establish a Heads of Agreement with intended buyer,
- Coordinate contract drafting and responses to commercial, financial, legal and environmental due diligence.
Outcomes
Sale achieved at a good price, close to sworn valuation and three months prior to the deadline set by the financier. Achieved 100% repatriation of debt to the financier and all creditors including unsecured creditors. The client achieved a return on their assets significantly greater than accumulated debt.