Governance Leadership Civil Engineering

Major contract disputes can rapidly destabilise even well-established businesses, particularly in project-driven industries where cash flow, lender support, and operational continuity are tightly interconnected.

This case study explores how a civil engineering contractor with more than 200 employees and annual revenues exceeding $35M engaged Vantage Performance during a severe financial and operational crisis.

The business encountered significant cash flow pressure following issues on a major contract, culminating in a settlement with the client that resulted in losses of approximately $16M.

As a result:

• Banking covenants with the secured lender were breached

• Forecasts identified an impending cash shortfall of approximately $6M under existing banking facilities

• Directors became increasingly concerned about potential insolvent trading risks

• The business faced the possibility of operational shutdown and significant destruction of enterprise value

Vantage Performance was engaged to rapidly assess the situation, stabilise the business, and develop a restructuring strategy capable of preserving operations, workforce continuity, and stakeholder value.

Key initiatives included:

• Conducting a rapid operational and financial review to identify critical risks and restructuring priorities

• Determining that the company’s existing capital structure was insufficient to support ongoing operations

• Assisting management and the Board in identifying and engaging prospective investors

• Leading transaction structuring discussions and negotiations with stakeholders and potential investors

• Assessing restructuring alternatives and determining that a Voluntary Administration and Deed of Company Arrangement (DOCA) provided the strongest pathway to preserve enterprise value

• Supporting the Board in appointing Voluntary Administrators and coordinating the restructuring process

• Assisting with negotiations and execution of the sale of the business to a newly established entity to preserve operational continuity

• Facilitating the transfer of employees, business assets, client contracts, and hire purchase lease arrangements to the new operating entity

• Structuring a Creditors Trust funded by non-core asset transfers and approximately $6M in investor proceeds to support legacy creditor outcomes

A major focus throughout the engagement was preserving the underlying operating business while minimising disruption to employees, customers, government contracts, and key stakeholders.

The Outcome:

• Successful continuation of business operations under new ownership

• Preservation of employment for the existing workforce

• Resumption of major government agency contracts

• Stabilisation of stakeholder relationships and operational continuity

• Establishment of a stronger capital platform through partnership with a well-capitalised national operator

• Creation of new growth opportunities, including expansion beyond Western Australia

The result wasn’t simply a restructure, it was the preservation and repositioning of a major operating business through strategic execution, stakeholder coordination, and disciplined restructuring leadership.

This is where Vantage Performance operates: helping businesses navigate complex restructures, operational crises, and strategic transitions while preserving long-term enterprise value.