Hamilton Locke acted for Christopher Hill, Joseph Hansell and Ross Blakeley of FTI Consulting in their capacity as voluntary administrators of Autocare Services Pty Ltd on the successful restructure of the car transport and storage business.
Given the changing nature of the automotive industry and the ongoing impact on COVID-19 on the supply chain for new cars the restructure was necessary and throughout the administration period active steps were taken by the administrators to ensure a more viable business model going forward. This involved, amongst other things, negotiating outcomes with key customers and landlords. These steps, as well as the compromise of certain debts through the DOCA, right-sized the business to a more sustainable level and was implemented with minimal business disruption during COVID-19. The restructure of Autocare Services Pty Ltd will see the business continue as a going concern under the existing ownership structure and was effectuated via a deed of company arrangement put forward by LINX Cargo Care Group.
Commenting on the transaction, Nicholas Edwards said: “The restructure of the Autocare Services business shows the effectiveness of the existing voluntary administration regime to save businesses and jobs, and is a good example of implementing necessary change with minimal business disruption. The administrators took a commercial and realistic view throughout the process which gave the business the best chance of survival and in doing so maximized the return to creditors through the DOCA ”.
Commenting on working with Nick and the team, Christopher Hill said “It is always very pleasing to be involved in the successful restructure of a business, and the Autocare Services administration is a great example of what can be achieved using the regime in Australia – however, it is never a completely straight forward process and having the support of the Hamilton Locke team on the way through was an integral part of reaching the outcome. Nick and the team are always a pleasure to deal with, adopting a practical, outcome driven and team-based approach, ensuring the engagement progressed as smoothly as possible”.
The Hamilton Locke team was led by restructuring and insolvency partner Nicholas Edwards who was closely supported by senior associate Monty Loughlin and lawyer Katrina Zivkovic. Key members of the firm’s litigation team including Brit Ibanez and Emily Pendlebury and employment team including James Simpson and Tim Zahara were also involved.
