Project Vanilla

Project Overview

Our Client is an Indonesian producer of natural ingredient products serving global food, beverage, and consumer goods industries.

Challenges

• The Client had previously refinanced its defaulted bank obligations through funding provided by a Hong Kong–based special situations fund. While the financing stabilized the Client temporarily, it carried high funding costs, restrictive covenants, and extensive security arrangements, limiting the Client’s financial flexibility.
• At the same time, the Client was experiencing strong market growth and required additional capital to fund capital expenditures, working capital, and settlement of third-party obligations. However, due to its prior loan defaults, the Client had effectively been locked out of the Indonesian banking system for over a year, making conventional bank refinancing difficult.
• The Client therefore required a comprehensive capital restructuring solution that would both refinance the expensive special situations debt and bring in a strategic investor to strengthen its balance sheet.

Our Approach

• Developed and evaluated funding and capital structure strategies, including debt settlement options and value creation pathways;
• Advised on negotiations with private equity investors capable of supporting the Client’s growth and operational expansion;
• Structured the bank refinancing to align with the private equity investment terms and capital structure objectives;
• Prepared valuation analyses to support investor discussions and transaction structuring;
• Coordinated due diligence by the private equity investor and participating banks; and
• Managed the execution process and closing of both the refinancing and equity investment.

Outcome