Financial restructuring of a midsize industrial bakery.
Our customer acquired the shares of a midsize industrial bakery several years ago using different sources of financing. Several banks were involved, as was the formal owner and a private equity firm.
Call and put-options were in place with the private equity firm. At the same time, the acquisition loan was putting pressure on operational cash flow. In order to have a clean perspective for the future, all financing arrangements had to be renegotiated.
JBR first made analyses of the existing portfolio from both a strategic and a financial perspective, resulting in suggestions for profit improvement by restructuring the business. At the same time, JBR advised on the individual loans and negotiated with several parties simultaneously. We held discussions with the bank to get new funding to finance the restructuring program and we negotiated a new shareholders’ agreement with the private equity firm.
A completely new strategy covered by sufficient funding. New loan agreements were reached with all relevant players and, two years after the financial restructuring, we advised our client on the repurchase of all shares from the private equity firm.