Restructure of nationwide commercial vehicle hire company
Quantuma engaged to advise on the restructuring of a £100m nationwide vehicle hire company.
- National hirer of circa 6,000 general and municipal vehicles employing 360 people at eight depots
- Turnover impacted by new entrants in the market and fall in second hand prices
- Reduced customer demand led to a sharp fall in vehicle utilisation rates
- Company accelerated its vehicle disposal program but faced a significant cash shortfall of £7.5m.
- Eight banks and four vehicle manufacturer funders owed £164m
- Funding comprised revolving hire purchase facilities, terms loans, invoicing discounting and overdraft facilities.
- Quantuma initially engaged to advise on management’s restructuring plan and set out options
- Quantuma engaged to request a three month repayment holiday on all hire purchase agreements
- Senior bank agreed to temporarily increase facilities to meet peak requirements whilst negotiations took place over eight weeks
- Meetings held with all funders to set out short and medium term plan and request repayment holiday
- 100% of funders supported three month holiday generating sufficient cash to meet shortfall and provide headroom for contingencies.