CASE STUDIES
Major Installer of Underseas Oil and Gas Pipelines
RAS was initially engaged as Restructuring Advisor by the board of directors of this publicly traded installer of underseas oil and gas pipelines. The Company operated worldwide and was experiencing significant liquidity issues related to operating issues and deteriorating relationships with its secured lenders. RAS was initially tasked with analyzing and recommending improvements to the Company’s overhead costs and cash management systems. Based upon our findings, RAS was further engaged to serve as the Company’s Interim CEO to oversee implementation of a controlled turnaround plan without the need to pursue any form of bankruptcy or similar process.
CHALLENGES
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Public company with significant disclosure requirements
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Loose management structure
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Bloated overhead with no apparent will to implement reductions
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Significant losses related to various contractual issues with multinational customers
SOLUTIONS
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RAS conducted extensive interviews with management and staff
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RAS determined that the incumbent CEO was not capable of leading a turnaround, although the core management team was very capable and understood the issues
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RAS was appointed as Interim CEO, working closely with the board of directors on our recommendations
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RAS reduced the management team to a core group and we led them in the negotiation of two large (over $100 million) contracts
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RAS negotiated a conversion of $100 million of secured debt into 95% of common equity
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Upon full implementation of the turnaround plan developed by RAS, the Company achieved significant operating profits (and liquidity) and was ultimately sold at a value of approximately $750 million versus a market cap at the time of our retention of just $40 million