Employees, creditors benefit as KWM restructuring team supports the first successful trade on of a commercial construction house through voluntary administration, and sale as a going concern.
King & Wood Mallesons (KWM) has advised Deloitte on the voluntary administration and sale of Probuild’s Victorian business to Roberts Co (Roberts) and Western Australian sister company, WBHO Infrastructure (WHBOI), to SRG Global (SRG).
As part of Roberts’ acquisition, Roberts have now taken over 6 of Probuild’s ongoing Victorian projects, worth more than $1.6 billion, and also taken on 152 Probuild staff as permanent employees of Roberts Co.
The acquisition by Roberts has swiftly followed on from SRG’s purchase and recapitalisation of WHBOI via a deed of company arrangement. That acquisition resulted in SRG taking on 275 employees from WHBOI.
The outcome of the successful trade on and sale of Probuild’s Victorian business is set out in the creditors’ report released last week for Probuild entities.
The creditors report highlights the hugely beneficial impact of this novel approach:
“Our strategy of continuing to trade the business, recommencing certain key projects, whilst also pursuing an accelerated sale of the business, ultimately facilitated the sale achieved and resulted in a significant reduction in overall creditor claims of approximately $270m across employees, subcontractors, suppliers, Principals and bank guarantee/surety providers.”
“These actions also saved jobs for 193 employees and ensured ongoing construction of six key developments.”
“Importantly for the Probuild Group’s stakeholders, this successful trade on and sale has avoided any significant industry contagion as was widely anticipated upon the commencement of the administration of the Probuild Group.”
Probuild’s creditors approved a deed of company arrangement at a creditors’ meeting yesterday to conclude the administration process.
A cross disciplinary team of the firm’s preeminent Banking & Finance, Dispute Resolution, Mergers & Acquisitions, Employment, Construction and Restructuring & Insolvency practices was led by Partner Samantha Kinsey with support from Partners Amy Munro, Paul Schroder, Murray Kellock, Sam Dundas, Juliana Jorrisen, Travis Toemoe and Ian Solomon on the Probuild business and Partners Nathan Collins and Phil Willox on the sale of the WBHOI business to SRG.
Commenting on the sales, Samantha Kinsey said: "The successful sale of these businesses as going concerns is really significant achievement, and sends an important message to the market.”
“It relied upon the Deloitte and KWM teams’ ability to keep the construction projects running during the administration period. I am extremely proud of all of our people involved and delighted that the sales resulted in so many jobs saved and so many losses avoided.”
The deals have now completed, continuing KWM’s well-established history of conducting successful restructures with complex elements.
