Civil Contracting Governance Restructure

Major contract disputes can rapidly destabilise even high-revenue businesses when liquidity, stakeholder confidence, and operational discipline come under pressure at the same time.

This case study explores how a concrete and civil contracting business with annual turnover of approximately $80M engaged Vantage Performance during a period of severe financial and operational stress.

The business had become heavily impacted by a dispute on a major contract, resulting in the client withholding more than $4M in claims. At the same time, governance weaknesses, stretched cash flow, and increasing lender pressure had significantly reduced the company’s financial flexibility.

At the time of engagement:

• The business was in default under its working capital facility

• Short-term liquidity pressure threatened ongoing viability

• The ATO was effectively being used as a source of working capital and required formal repayment arrangements

• A clear strategic plan and communication framework with stakeholders did not exist

• Timing of major new contract awards remained uncertain

• The company’s capital base had been materially depleted by project losses

• Previous attempts to pursue an equity raise or business sale process had stalled

Vantage Performance was engaged to stabilise the business, preserve stakeholder support, and explore longer-term restructuring and capital solutions.

Key initiatives included:

• Conducting a rapid strategic and financial review of the business and the Director/Owner’s position

• Developing and implementing a restructuring and cost rationalisation plan

• Reducing overhead salary costs by approximately $1.5M

• Rationalising office locations and reducing occupancy costs

• Preparing integrated three-way financial forecasts to assess viability and liquidity requirements

• Establishing a structured communication and reporting framework with the secured lender

• Reactivating the equity raise and business sale process

• Identifying and engaging potential investors and acquirers

• Leading negotiations with stakeholders and transaction counterparties

• Drafting Heads of Agreement documentation and establishing a secure online due diligence data room to facilitate transaction execution

A major focus throughout the engagement was maintaining stakeholder support long enough to stabilise operations, secure new revenue opportunities, and preserve enterprise value through an orderly transaction process.

The Outcome:

• Continued support from financiers and key stakeholders during the restructuring period

• Successful implementation of operational restructuring measures

• Securing of a major new contract that improved business outlook and operational continuity

• Successful completion of a business sale utilising the Voluntary Administration process

• Material reduction in exposure for the Director/Owner

• Preservation of employment for the Director and more than 150 employees

• Full recovery achieved by the secured lender

The result wasn’t simply the completion of a sale process, it was the preservation of operations, stakeholder value, and workforce continuity through disciplined restructuring and strategic transaction execution.

This is where Vantage Performance operates: helping businesses navigate liquidity pressure, operational crises, and complex restructuring environments through disciplined execution and stakeholder leadership.