Telecommunications Restructure and Sale

Cashflow stabilisationStakeholder communicationDebt raise Bridging finance

Vantage Performance acted as the Chief Restructuring Officer (CRO) for this project.

In a turnaround,
communication is key.

Australia’s mining industry is a powerful force. In good times, its contractors and suppliers share in its success. But when times get tough, they’re amongst the first to feel the impacts.

In 2015, our client, a successful telecommunications supplier to the mining sector became victim to a general downturn in the industry. Turnover dropped by 33% and margins were squeezed resulting in a working capital requirement of $2M.

The news of the downturn in business quickly spread uncertainty through the company’s employees, suppliers and financiers significantly elevating stress levels of the executive team.

How we turned things around.

Our first course of action was to implement a business stabilisation plan and to secure immediate working capital to allow us time to assess strategic options for the group.

Support from the company’s creditors and major financier was secured with a stakeholder management strategy which bought us valuable time.

We also project managed a full refinance of the group providing additional working capital to complete the restructure and clear creditor arrears. At every stage, all stakeholders were carefully managed and remained positive and supportive.

Once the business had stabilised and returned to profit it was decided that the best course of action was to sell the company. The business was successfully sold to Telstra and is well-positioned for substantial growth.

“We sought the advice and services of the Vantage team last year when the mining industry made it very difficult through extended payment terms for businesses to participate in our day to day business. Vantage not only brought a wealth of knowledge and industry peers to the table for us to navigate a path forward, they also managed the implementation of short and medium term strategies. We had a very successful outcome and continue to strive to be a thought leader in our market.”

Managing Director

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