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KordaMentha Corporate Recovery Services undertakes formal insolvency and turnaround/workout engagements in relation to companies in financial distress. Our approach is to explore all avenues to save businesses through restructuring and streamlining operations (and industries).
KordaMentha has offices in all Australian capital cities, Auckland and Singapore as well as the global resources of our international affiliates in the UK and USA.
KordaMentha partners undertook the first Voluntary Administration in Australia, the largest Voluntary Administration in Australia (Ansett with 42 companies, 15,000 employees and >$1 billion assets), the largest Group of Voluntary Administrations in Australia (Stockford with 84 companies) and more Voluntary Administrations than any other insolvency firm in Australia in 2003.
Sound business advice, ethics and empathy are our trademarks. Maximising value for our clients, both large and small, is at the core of our approach.
We are a national firm whose reputation and success in managing large, complex voluntary administrations is unparalleled in Australia.
We help identify and explore synergies with potential new owners to realise optimal outcomes for all parties.
Our aim is to offer a creative approach to distressed company consulting - in many cases a turnaround is achievable.
Central to KordaMentha’s approach is our tried and tested three-point plan for all corporate recovery restructuring assignments: - Stabilise the business
- Formulate a corporate restructuring or turnaround solution
- Implement and monitor the solution
Importantly, we provide implementation, monitoring and follow-up services. This is an area many of our competitors neglect but it is essential to the holistic approach of our corporate recovery practice.
| Formal Appointments
Receiverships
| KordaMentha’s team has built strong relationships with leading financial institutions over the years. Testament to the skills of its staff, the firm has been appointed receiver and manager of a diverse range of companies.
KordaMentha has proven ability to mitigate the risks faced by secured lenders reducing their exposure to underperforming companies.
When it comes to receiverships, KordaMentha challenges the stereotypes. We think creatively when formulating solutions and have even been known for example to recommend that the secured lender take an equity stake in the underperforming company (receiving an equity-type return) when we have believed that to be the most viable solution. In certain cases we may take on a role as director rather than as receiver if that approach would add more value.
| Voluntary Administrations
| Voluntary administrations allow the greatest flexibility in restructuring a business to achieve the best outcome for the company, its creditors and employees. The commercial issues of trading the business are carefully worked within the legal parameters of the Corporations Act to arrive at a desired outcome.
Our experience in the area of voluntary administrations is considerable. Our people worked on Australia’s first large voluntary administration, the Brashs Group. In addition, Mark Korda and Mark Mentha are the administrators of Australia’s largest voluntary administration, the Ansett Group. Proceeds from Ansett’s business and asset sales are estimated to total AUD$1 billion.
As demonstrated during our work on the Ansett administration, KordaMentha staff will explore all available avenues to streamline the business and improve profitability to ensure the greatest possible return to the company’s creditors, employees and other stakeholders.
| Liquidations
| KordaMentha has experience in all types of liquidations, whether it be a creditors’ voluntary liquidation following a voluntary administration, an appointment by the courts or an appointment by the members as part of a corporate restructure.
| Personal Insolvency
Top Individuals may find themselves in financial difficulty as a result of a failed business where an individual has traded as a sole trader or as a partner in a partnership. Bankruptcy and Part X Arrangements are two of the formal options available to an insolvent person.
| Bankruptcy
| In a bankruptcy, an independent Trustee has the task of ascertaining the property of the bankrupt and may recover property to which the bankrupt estate is entitled. To assist in this, the Trustee has wide powers to investigate the affairs of the bankrupt and discover the extent of the bankrupt’s property. The Trustee realises property and divides the proceeds amongst the creditors in accordance with the priorities established under the Bankruptcy Act.
| Part X Arrangements
| | Similar to a Deed of Company Arrangement, Part X is the formal process between an insolvent individual and their creditors whereby the debtor avoids going bankrupt. Such an approach allows a flexible solution to financial difficulties. The advantages of Part X over bankruptcy for a debtor are the avoidance of the stigma of bankruptcy, the provision of a greater return to creditors than if the debtor was forced into bankruptcy, the controlling Trustee provides independent advice, the avoidance of a restriction on carrying on a business and incurring credit whilst an undischarged bankrupt and the debtor secures immediate release from his/her debts. | |
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