Case Study
Funding the Administrators in Aerison Group Limited
Overview
Aerison was a $200m mining services provider in Western Australia that appointed voluntary administrators in 2023. The appointment was prompted by a large contract dispute, however, other contracts in the business were profitable. Merits to keep the business trading therefore clearly existed. However, Aerison’s senior lenders were unwilling to extend further funding. $5m for working capital purposes was needed to keep operations going during the administration period.
The challenge
Timing was critical to allow the administrators to take the appointment and continue to trade the business and preserve value whilst managing their exposure to the significant costs being incurred.
The solution
We were able to quickly obtain consent from the senior lender for our debt to rank ahead of their security interest. This enabled us to offer a 3 month $5m facility to the administrators that provided for an initial drawdown immediately following their appointment.
Results
The company successfully traded through the administration and completed a deed of company arrangement.
The company’s major profitable contracts were preserved, and the business was sold through the deed of company arrangement.
Future Plan
Having demonstrated our capability to finance difficult distressed assets within a critical timeframe and with the support of a major Australian financier, we are eager to continue to build this profile.
We are selective about the insolvency providers that we are willing to work with and are keen to invest in developing mutually beneficial relationships.