Insolvency & Restructuring in the Projects & Infrastructure sector

Projects & infrastructure require significant funding. Transactions in this sector often involve long term commitments with substantial spending. Funding structures typically assume a predictable income on the project, at a level sufficient to repay debt, and with little capacity to cope with major changes in financial prospects of the project.

This creates financial risk. Potential difficulties which seemed unlikely at the start of the project can blow up into  major problems as circumstances change.

If problems do arise, solutions can be difficult to find or implement.

Project vehicles may have little capacity to absorb losses and their backers may be unwilling to make up shortfalls. The recent high profile Carillion and Interserve cases show that, even where the project vehicle is part of a large group, there may be little real financial capacity in the project company to address these difficulties.

To address these issues Fladgate have set up a multi-disciplinary team to advise clients.

Some of the areas commonly covered include:

  • advice on strategic options open to directors or stakeholders of distressed business;
  • emergency fundraisings
  • acting for insolvency practitioners appointed as administrators or other insolvency office holders over businesses
  • representing creditors and joint venture partners of projects or infrastructure projects in insolvency procedures and distressed transactions
  • planning transactions where insolvency risks are feared
  • asset recovery, fraud, breach of duty or other litigation proceedings.

If you have any questions or queries please call Jeremy on +44 (0)20 3036 7377 or email jwhiteson@fladgate.com

If you have any questions or queries please call Bree on +44 (0)20 3036 7220 or email btaylor@fladgate.com

“The practice provides ‘responsive and clear advice’ across a range of restructuring and insolvency matters.”

Legal 500 2016
 
  • Advising SPL Powerlines Group on their rail joint venture with Carillion group. This culminated in our client’s acquisition of the 50% joint venture stake in Carillion Powerlines Limited owned by the Carillion Group. SPL Powerlines Group then owned 100% of the shares in the project vehicle and were able to continue with the project, despite the liquidation of Carillion.
  • Advising directors of a project structure for the building and maintenance of a hospital. The companies faced financial difficulties due to the appointing health authority withholding payments after a dispute on service provision arose. In view of continuing difficulties the companies needed to be put into administration.
  • Advising two leading infrastructure fund managers in relation to the on-going, time-critical project management of three large UK hospitals following the liquidation of Carillion Services Limited.
  • Advising directors of PFI project vehicles in various sectors on options open to them following withholding of unitary charge payments by local authorities
  • Advising liquidators of Partners for Improvement in Camden Limited and PFI Camden (Holdings) Limited, a structure to refurbish and run a substantial housing development in North London following the withholding of unitary charge payments by the local authority.
  • Advising contracting parties with Interserve Group on the implications of its financial difficulties and subsequently on Interserve’s administration and pre-pack sale of its business