case study - turnround practice

Publicly quoted engineering group

Stakeholder: group parent company.

Business: a group of 35 trading subsidiaries engaged in power and process engineering, construction, materials handling and military facilities management. Turnover: £800m. Employees: 14,000 in Europe, South Africa and USA.

Objective: to refinance the entire group.

Process: the appointment of a new Chairman and CEO soon led to the realisation that the business needed more funds and a rescue rights issue was prepared. The task was to persuade the 6 banks holding £350m of syndicated and bilateral facilities to renew those facilities in the event that the rights issue took place.

Outcome: the bank facilities were successfully renegotiated and the £74m rights issue was over-subscribed.