Guiding a listed mining services provider through a restructure
KordaMentha supported a listed underground mining contractor through a safe harbour restructure following a workplace fatality, contract loss and lender pressure.
Related Industries
Energy & Natural ResourcesA listed underground mining services provider faced significant disruption following a tragic workplace fatality and the collapse of one of its contracted mine sites.
The incident triggered criminal proceedings, the termination of a major contract, and a substantial damages claim. Already over-leveraged, the company’s financial position deteriorated rapidly, prompting concern from its lender.
KordaMentha was engaged to provide safe harbour advice to the board, ensuring that the steps being taken to stabilise the business and pursue recapitalisation were reasonably likely to deliver a better outcome than voluntary administration.
How we helped
Working alongside an interim management team, KordaMentha supported the company’s efforts to raise capital, reduce debt and reposition its operations.
- Validated recapitalisation and asset sale plans
- Led lender negotiations to manage facility step-downs
- Enabled time to realise surplus assets without forced sales
- Supported going-concern requirements for audit sign-off
- Advised on strategic sale of underperforming division
- Provided safe harbour guidance to the board
Outcomes acheived
- Capital raised: Strengthened balance sheet
- Assets sold: Reduced debt without forced sale pricing
- Division sold: Strategic buyer secured for underperforming unit
- Debt refinanced: Improved lender terms and reduced leverage
- Safe harbour maintained: Avoided voluntary administration
- Audit sign-off achieved: Supported going-concern status
- Growth enabled: Business repositioned for future opportunities
