5:30pm - 8:00pm, 22/09/10
Christine Nixon: Community Turnaround
Registration: 5.30pm - 6.00pmPresentation: 6.00pm - 7.00pm ...
5:15pm - 8:00pm, 28/09/10
Blue Sky Mining - Avoiding Boom Bear-traps
Registration: 5.15pm - 5.45pmPresentation: 5.45pm - 6.45pm ...
Anchorage Capital's turnaround of this iconic Qld brand. achieved targeted run rate savings of $10m, new debt facilities were negotiated and a range of operational improvements and efficiencies achieved, resulting in adjusted EBITDA increasing from $6m to $35m and finally exited at 129% IRR and 2.5 times money. Promentor's involvement in the operational turnaround is noted.
Epworth is a major Victorian healthcare group operating 4 acute care hospitals in Melbourne. The company breached loan covenants following the late delivery and cost over runs at a new hospital and simultaneously suffered changing relationships with health insurance groups. Its bankers, NAB led by TMA Victorian State Committee Chairman Rick Drury, brought in PwC as its adviser's, who established a multidisciplinary team to develop a sustainable turnaround. A new CEO was appointed in January 2007 to oversee the development and execution of this strategy. Over 18 months, Epworth achieved a dramatic turnaround with annual revenue increasing dramatically and a $40m turnaround in net profitability.
Blake Dawson & Deloitte worked together on this transaction which arose from the parent company insolvency, implementing an international restructure of the group which allowed the business to be sold to a US PE Fund. This included implementation of the first pre-pack receivership in Australia and all jobs in Australia were saved.
Bounty is a listed underground coal contract miner and equipment leasing company. Its financial position had deteriorated due to the loss of a profitable contract and poor mining conditions encountered in its other contract resulting in the forecast operating losses of circa $5m and a cash deficit. Quay Capital engineered a comprehensive turnaround: improving governance through board changes, a cost reduction program saving operating expenses of $7m (30% of sales), and renegotiating key contracts allowing Bounty to raise $4m new equity and a $6m underwritten listed convertible note to provide working and expansion capital. Bounty returned to cash positive operations within 6 months.
Poor management of working capital and excessive debt led to financial distress. Vantage Performance arranged an equity injection of $2m , recruited a new MD, and facilitated the vertical integration merger with Shepherd Contracting, and renegotiated equipment finance with 12 financiers, saving some 80 jobs.
Project Drott, a Qld based earth moving & civil construction business. Following an unsuccessful foray into fixed price contract construction, Drott suffered operating losses resulting in loss of confidence of its banker and a working capital crisis. Key milestones achieved: Restoration of the business banking relationship, a 97% increase in revenue within 12 months, Net Profit margin of 6% versus a loss of 7% in the previous financial year.
This is a new award which will be submitted to CFO Magazine for their annual awards to financial and professional services. Tony, as the CFO worked with KPMG was involved within one the highest profile collapses at the beginning of the financial crisis, Centro properties. Tony led the in-house working group with KPMG to negotiate a 3 year extension of Centro's $3.9 bn debt facilities and arranged conversion f $1bn of debt into hybrid security, while retaining the majority of the US and Australian property portfolios. Over 1400 jobs were saved through the restructure process.