BRI Ferrier
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Businesses in the resources sector are currently experiencing many and varied financial pressures; pressures that can (and in some cases will) push them past their limits. Turning a business around once it has entered into a downward spiral is not an easy feat, however, engaging professionals with industry knowledge and specialist reconstruction skills can bring about fast and cost-effective resolutions.
BRI Ferrier helps organisations manage financial challenges through the provision of reconstruction, insolvency, turnaround management and forensic services. Taking the time to listen to our clients, we can quickly diagnose the cause of financial distress, understand the particular requirements, agree on a course of action then swiftly deliver tailored and commercially appropriate solutions.
Our national team works with businesses ranging in size from sole traders and private companies to ASX listed and government entities. We take a complete view of the business to understand the drivers that impact its success, including competitors, industry dynamics, product lifecycles, profitability and viability. When introduced early we can assist businesses to make timely improvements that will help them overcome challenges and achieve a positive outcome.
How we have helped others
BRI Ferrier was appointed voluntary administrator to a publicly listed company and its subsidiaries, which operated as a thin-seam coal mining contract services group providing mining solutions and equipment to mine owners. A pooled deed of company arrangement was developed incorporating a cash distribution and debt for equity swap. The company was restructured through a reduction in overheads and an injection of capital. It was returned to the directors and continues today as a going concern.
In another case, BRI Ferrier was appointed voluntary administrator to a publically listed exploration company, with tenements in far north Queensland and Western Australia, and its subsidiaries, which operated as miners of Kaolin. Due to unfeasible production and transportation costs, the mine site was no longer viable. BRI Ferrier managed the site for 12 months on a care and maintenance basis before realising the site’s plant and equipment and winding the company down. The listed entity was restructured by divesting non-core assets (excluding tenements). It was eventually relisted and continues trading today.
How we can help you
The mining boom and the subsequent downturn have created windfalls as well as a multitude of challenges. For miners, it has meant difficulties in finding skilled talent and a substantial increase to their cost base. For suppliers of mining services, it has meant onerous contract terms incorporating performance guarantees within tight timeframes, intense competition and narrowing margins.
BRI Ferrier has extensive experience dealing with mining and mining services businesses. We draw from this experience to develop tailored, commercial and innovative solutions to financial challenges.
In this challenging environment, it is important for businesses to be able to answer the following:
- Do you have cashflow problems or inability to meet liabilities?
- Has your overdraft been at its limit for an extended period of time?
- Is your staff diverted from core business to chase payment of debtor invoices or deflect creditor demands?
- Is there a breakdown in relationships with suppliers and financiers?
- Are you unable to pay the ATO and employee entitlements?
- Is there a need to sell capital assets?
If your answer to any of these questions is yes, and if you would like to explore solutions to your specific challenges, please contact BRI Ferrier for a confidential discussion – www.briferrier.com.au.