This organisation specialises in the production of branded milk and dairy products and is one of the major manufacturers of milk, yoghurt and fresh dairy products in Australia.
Following the collapse of its Italian parent company and with a highly geared balance sheet, the banking syndicate raised concerns about the ongoing viability of its local operations with $650 million turnover ($300m in debt (bank syndication)).
PPB Advisory’s first priority was to stabilise the underlying business performance. We then performed diagnostic analysis of cash flows, costs and revenues, assessed enterprise value and sustainable debt level, monitored performance, and facilitated refinancing.
Underperforming businesses were divested to reduce debt facility and remaining debt was restructured and refinanced debt on more favourable terms. Relationships with key financial stakeholders were stabilised and the company continued trading on a sustainable foundation.