• Project Byrne – Debt / Equity Restructure
Deals:

Project Byrne – Debt / Equity Restructure

02 August 2017

Sector

Technology

Business description

The Company is an advertising technology business which utilised innovative technology to deliver predictive personalised marketing for brands.

Situation

The Company operates in a highly competitive market with low margins and disintermediation of services.

There were concerns regarding the ongoing viability and, therefore, the solvency of the Company. The management team were inexperienced in terms of facing these kind of issues.  There were conflicting stakeholder requirements, also potentially conflicting with director duties.

BDO Role

Due to imminent future working capital concerns, BDO Special Situations M&A team were engaged by the Company, its Shareholders and a secured lender (whom, due to fund restrictions was unable to provide further working capital assistance) to identify a solution.

Sensitivity relating to market perception was required as was the need for total confidentiality.

BDO carried out an M&A process in respect of the Company’s business and assets. Due to time constrictions and the limited market that could be approached (without causing damage to the value of the underlying business) it became clear that an alternative solution would needed to be found to rescue the Company.

Outcome

BDO worked with all stakeholders, including the two other secured lenders, to ensure that a solution could be achieved. Following a debt and equity restructure, further funding has been provided to the Company.

This outcome has enabled the Company to continue to trade and has provided a better return to the Company’s creditors and shareholders in the long term than could have been expected if the business and assets had been sold through a pre-pack admin or if the Company had ceased to trade.

BDO have an ongoing relationship as a valued adviser.