BTG Advisory was instructed by one of the four banks which provided bilateral funding to one of the UK’s top ten care operators. The appointing bank funded one of the sub-groups with debt of £16m. Total group debt was circa £185m. Revenue generated by the sub-group was circa £9m with group revenues totally circa £125m.
The material issues that the team had to consider included an OpCo/PropCo structure, identification of the centre of main interest (COMI), waterfall structure, leasehold properties, identification of unviable care homes, and public relations.
There was no interaction with management due to the sensitive nature of the appointment. We therefore prepared cash flow forecasts based on our industry knowledge in order to demonstrate the funding required that would allow trading of the sub-group to continue. Our specialists also prepared a detailed plan to cover the event that an Administration order was made with minimal notice, including identifying a team of suitably qualified staff members to attend each of the homes and an industry specialist agent being ready to assume trading and liaise with the CQC.