Case Studies

Case Study 1 – Bridging Finance and Mortgage Finance

A company had received a winding up notice from the Australian Taxation Office. The directors owned a number of residential investment properties and had sufficient equity in these properties to pay out the company debt owing to the Australian Taxation Office in full. However, to refinance the mortgage on these investment properties through traditional lending institutions would take 4 to 6 weeks. The winding up notice provided for payment in 21 days or the company may be liquidated.

180 Corporate provided the company with a bridging finance loan for a period of 6 weeks secured against the residential investment properties. 180 Corporate also assisted the directors to refinance the mortgage on their investments properties through traditional lending institutions to repay the bridging finance loan from 180 Corporate. This provided a real solution to the company.

Case Study 2 – Bridging Finance and Inventory Finance

A company had been experiencing cash flow problems due to its growth. It has a container on the wharf and the container would not be released until paid in full. Importantly, the company needed an inventory finance facility to support the future growth of its business. To arrange an inventory finance facility for the company would take 4 to 6 weeks. The release of the container was critical to satisfy client back orders.

180 Corporate provided the company with a bridging finance loan for a period of 6 weeks secured against the residential investment properties of the directors. 180 Corporate also assisted the directors arrange an inventory finance facility to repay the bridging finance loan from 180 Corporate and to support the future growth of the business. This provided a real solution to the company.

Case Study 3 – Strategic Plan and Informal Creditor Negotiation

A company has been experiencing cash flow problems. It had received a winding up notice from a major supplier. The winding up notice provided for payment in 21 days or the company may be liquidated. The company was not in a position to pay out the company debt.

180 Corporate developed a Strategic Plan for the company. Foremost, 180 Corporate negotiated with the major supplier who agreed, due to the financial situation of the company, to accept 50c in the dollar repayable over a two year period as full and final payment of the debt owed. This provided a real solution to the company.

Case Study 4 – Voluntary Administration

A company was insolvent. 180 Corporate initially looked at all options to prevent the company entering into voluntary administration. The appointment of an external administrator is a company’s last resort. Prior to the appointment of the voluntary administrator 180 Corporate developed a plan with the directors of the company.

The company was placed into administration. 180 Corporate provided a bridging finance loan to the company to allow the administrator to trade on the business during the “trade on” period. 180 Corporate assisted the directors prepare a deed of company arrangement which creditors accepted. The deed of company arrangement provided for 30c in the dollar return to all unsecured creditors payable over a three year period. 180 Corporate, on acceptance of the deed, provided a factoring facility to the company to allow successful trade going forward. This provided a real solution to the company.

Case Study 5 – Provision of Equity

A company has been growing very quickly over the last few years. It already had in place numerous debt facilities which included inventory and invoice discounting finance. It needed additional capital to support its growth plans.

180 Corporate developed a Strategic Plan for the company. 180 Corporate then raised equity for the company from a private equity partner, the equity partner took a 30% interest in the company. The company importantly had secured the capital it needed to grow its business. This provided a real solution to the company.

Case Study 6– Sale of Business

A director of a company had built a good business and felt it was a time to sell the business. 180 Corporate assisted the company with the sale of its business. This included the correct structuring of the business and preparing the information memorandum and documentation to achieve the best possible price.

The business was sold and 180 Corporate also provided the buyer with finance to achieve settlement. This provided a real solution to the company.

Case Study 7– Contingent Liability Management

A company was insolvent. 180 Corporate initially looked at all options to prevent the company entering into liquidation. The appointment of an external administrator is a company’s last resort.

The company was placed into liquidation. The business was sold by the liquidator and the liquidator threatened to pursue the director for insolvent trading. Additionally, the Australian Taxation Office had previously issued a director penalty notice which the director had failed to comply with. The director was now personally liable to Australian Taxation Office.

180 Corporate negotiated with both the liquidator and the Australian Taxation Office who both agreed to accept 10c in the dollar as full and final payment of the debt owed. This provided a real solution to the director.