Approach and Outcome
The Bank requested an Independent Business Review (IBR) in which we identified cost savings and debt restructuring that ultimately saved cash for the partnership and strengthened the serviceability covenant.
We also recommended that an LLP structure was implemented, which will result in a debenture for the bank to cover the lettings book and ultimately give the bank greater than one-to-one cover against their existing performing debt position. The debt is also structured to cater for seasonal trading and to further enhance the business’ working capital cycle.
The business had previously been poorly advised about the benefits of an LLP structure. Our tax specialists worked with our restructuring team to improve their understanding of the ramifications of such a change in structure, for which material added-value was derived by the customer and the bank. This was an excellent example of a multidisciplinary team working together to ensure the most satisfactory outcome for the bank and business.