Stabilisation & Strategic Review of £500m plc
This was a £500 million UK public company with manufacturing plants in the UK and the US. A number of domestic and international banks had lent substantial and unsecured amounts. Two profit warnings had led to a collapse of the share price and the resignation of the chairman/chief executive and the finance director. The non-executive directors asked Postern to assists the board in the control of the company and to seek an accommodation with the banks. Postern’s review showed that the net assets of the company had been overstated and the total indebtedness to the banks had not been fully recognised. The company was in crisis with its creditors and an accountant’s report claimed negative net worth.
In spite of this background Postern was able to demonstrate a viable future for the company, negotiated a standstill agreement with the banks together with increased and extended facilities from the consortium of lends. Postern developed a strategy of major disposals and cost-cutting and then exited on the appointment of a new chief executive. The strategy was successfully implemented, the banks were paid out in full and shareholder value was re-established.
Example Case Studies