Delivered a successful deed of company arrangement process for a SaaS company, which resulted in creditors receiving 100 cents in the dollar.
SurePact, a SaaS company based in Brisbane, needed a strategy to head off prospective financial distress. They needed a multi-pronged solution that addressed the future viability of the business, compensated their outstanding creditors, and managed stakeholder expectations.
Cor Cordis was engaged to resolve these complex issues impacting SurePact. Our Brisbane team adopted a successful voluntary administration (VA) / deed of company arrangement (DOCA) process which resulted in creditors receiving 100 cents in the dollar, the majority shareholding was sold and the DOCA was completed.
The primary challenge for Cor Cordis was to identify the best possible outcome for SurePact and maximise the chance for the business to continue trading. Addressing an underlying shareholder misalignment on the future direction of the business together with a balance sheet recapitalisation or business sale were critical issues for a successful business restructure to be effective.
We commenced a VA process. In the VA, SurePact continued trading for nine weeks whilst opportunities for a formal business sale and/or recapitalisation process through a DOCA were explored. It was important during this time that a business as usual for the client base and employees was delivered. The marketing of the business captured two competing offers both providing for 100c in the dollar resulting in the clearance of the creditor position.
Our analysis of the competing offers provided creditors with the opportunity to vote for the offer that best suited their circumstances and the subsequent negotiated DOCA terms provided for payment in full of creditor claims.
Interestingly and uniquely, the acceptance of the DOCA process by creditors provided a further opportunity to provide for the sale of the principal shareholder’s interest outside of the DOCA, resulting in a significant return to the principal shareholder.
Further, working capital funding was secured during the negotiations with proponents of the DOCA for the continued trade of the business.
We initiated an obstacle-free takeover of the business operations by the DOCA proponent. Today, SurePact continues to operate as a successful business.
We would like to extend our thanks and acknowledgment of the following advisors who played a vital role in the achievement of this outcome: