Restructuring and Special Situations Advisory

The UK office of Lincoln International has considerable experience of Restructuring and Special Situations.  Members of the U.K. team have advised on a number of restructurings including Brent Walker, Ashanti Goldfields, Polestar and  Danka Business Systems before joining the firm.

Lincoln International can assist clients, who may be encountering operational and/or financial challenges, to identify, assess and execute a range of strategic and/or financial alternatives. 

In particular, the UK office has a separate unit, Lincoln International Pensions Advisory, that provides specialist financial advice to Pension Trustees, Corporate Employers and Other Stakeholders on pension risk and funding issues including in stressed financial circumstances.  Darren Redmayne, who heads Lincoln’s London Office, was seconded to the Pensions Regulator in 2006 and brings that knowledge and experience to the group's advice.

The group’s specific capabilities in the U.K. include the following services:

• Helping Companies (debtors)
  • Types of situations:
    • Well performing but over-geared businesses with an inappropriate capital structure
    • Underperforming or stressed businesses with operational challenges
    • Distressed businesses (with negative cash flow)
    • Businesses at inflection points
    • Businesses facing unforeseen challenges
  • Sales / Divestiture work:
    • Non-core assets
    • Divisions
    • Entire companies
      
      

• Helping Creditors (e.g. banks, bondholders)
  • Renegotiating credit facilities
  • Obtaining covenant waivers / amendments
  • Advising on exchange / tender offers
  • Advising on pre-packaged / pre-arranged restructurings
  • Advising on consensual or insolvent financial restructurings
    
    

• Helping UK Pension Scheme Trustees (as a creditor class)
  • Types of situations:
    • Scheme Sponsor covenant weak
    • Real risk of Scheme Sponsor insolvency
      • Restructuring alternatives used when Company has a DB pension scheme
        
        

• Advice can involve:
  • Structuring / negotiating deal for Trustees
  • Negotiating pre-compromise arrangements
  • Assistance with UK Pensions Regulator clearance issues:
    • Assistance with discussions with Pensions Protection Funds (PPF) as relevant
    • Issuing fairness opinions (to either Trustees or Companies) on transactions involving a pension scheme
      
      

• Raising Capital
• • Reasons for raising new capital:
  • Fund operations
  • Replace existing creditors
  • Reduce senior leverage by issuing junior capital
• Types of new capital:
  • Senior debt (cash flow and asset-based)
  • Second lien debt / subordinated, junior or mezzanine debt
  • Preferred or ordinary equity (including private equity, strategic investments and PIPEs)