Safeguarding a group on the leisure sector

Sector of activity: Leisure
Size (sales in €m): 440

Context

  • A syndicated loan whose repayment dates were unsuited to the Group’s cash generation capacity
  • A sector impacted by changes in the regulatory and competitive environment
  • A Group whose investment policy was being held back by strict banking documentation
  • The initiation of a safeguarding procedure to allow continuation of the activity, protection of jobs and settlement of liabilities

Our mission

  • Assistance with modeling the safeguard plan
  • Modeling of projected cash flows to determine the scope and timetable for the necessary refinancing
  • Support for the company in discussions with its international creditors (credit institutions from 5 different countries)
  • Implementation of scenarios for all parties (credit institutions, court appointed receivers, debtors)

Results

  • Spreading of the syndicated loan’s repayment schedule over 8 years and reduction of the debt to be repaid
  • The proposals for safeguard plans were adopted unanimously by the financial creditors
  • Elimination of numerous constraints limiting the volume of investments, compliance with financial ratios in order to retain consistency between the financial structure and the operational business plan

Key success factors

  • Independence: creditors and the debtor only worked with Eight Advisory (cost savings for the company)
  • Full availability in respect of law firms (4 firms), the court appointed receivers practices (2 practices), creditors and the debtor