Case Study - Gulf Petrochem
Background
- Oil Trading Business based out of the UAE.
- Reported Group Revenue >6bn USD FY 19
- The Company operated an extensive Oil Terminal Business throughout the GCC and Western India. C 1,000cbm. The Company operated this as both captive and none captive.
- Extensive Gas Station and Logistics Network throughout Eastern Africa, Singapore and the UAE.
- Strong based Oil trading and Manufacturing business with manufacturing capabilities in Nigeria, UAE and India
- Control and Operation of 15% of lubricant production in India.
- Extensive Gas Station aAt the onset of Covid-19 in 2020, trading lines were gradually revoked with uncertainty rife in the oil markets.nd Logistics Network throughout Eastern Africa, Singapore and the UAE.
- As a result, the Company was unable to continue operating at the same trading levels as before the Pandemic.
- Debt size was approx. USD$1.200bn
- Appointed as the Independent Chief Restructuring Officer in July 2020.
Strategy
- Reassure stakeholder confidence in the business by undertaking control of the day-to-day operations of the companies.
- Develop strategies to significantly reduce the liabilities to continue operating the businesses.
- Undertake a global M&A process.
- Ensure a return to stakeholders was greater than an insolvency or bankruptcy.
- Explain the company's trading history to stakeholders.
Results
- Developed comprehensive investor proposal to realise the Company’s assets.
- Secured Lenders were fully repaid.
- Outstanding debt size was reduced to USD$600m from USD$1.5b.
- Sold the Fujairah terminal to Mount Row Infrastructure/Delaware Life.
- (This included undertaking steps to ensure the asset based KYC and the accounts were properly stated).
- Reassured stakeholder confidence in the process and avoided bankruptcy.