Who'll come to the (corporate) rescue?

Clayton Utz will. When a business is distressed or undergoing a restructure, we'll be there, working to preserve its value for employees, creditors and shareholders.


High-profile restructuring of Nexus Energy

In possibly the most prominent restructuring and insolvency matter of 2014, we acted for McGrathNicol, the administrators and then deed administrators of Nexus Energy Limited. With debts of approximately $400 million, McGrathNicol were appointed to the ASX listed Nexus when a takeover bid by an entity connected to Seven Group Holdings (Seven) (also an ASX listed company and a senior secured creditor of Nexus) was dramatically rejected by shareholders.

We negotiated crucial funding of $150 million so the administrators could satisfy urgent obligations; the funding also enabled Nexus' solvent subsidiaries to continue to operate. We also implemented a proposed recapitalisation and privatisation of Nexus through a Deed of Company Arrangement (DOCA) which involved the transfer of Nexus shares to a Seven entity.

Under the DOCA, it was proposed that in return for the Share Transfer, the Seven entity provide the funds to pay Nexus' creditors. After an expedited proceeding contested heavily by a small but vocal group of shareholders, orders were successfully obtained, signalling the Share Transfer for nil consideration, the termination of shareholders' rights and Nexus' return to operating as a going concern. The defendant shareholders did not appeal the decision.

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