Project LPG Monitoring Accountant

Project Overview

The Client is a gas processing company with a processing capacity of 140 MMCFD and provides gas compression services for a 920 MW gas-fired power plant. We had previously successfully led the restructuring of the Client’s USD 91.25 million syndicated debt.

The lenders and the Client agreed to appoint AJCapital as the Monitoring Accountant to assist with implementation of the restructuring plan, monitor the Client’s monthly cash flows, and ensure compliance with the cash waterfall mechanism.

Challenges

• The Client had failed in its previous debt restructuring, so the banks were cautious and sought to ensure appropriate control and monitoring of the highly rigid and complex cash waterfall mechanism.

Our Approach

• Created a monthly cash monitoring framework to monitor cash collections and cash disbursements;
• Assisted the banks’ appointed facility agent to implement the cash waterfall mechanism, including but not limited to the calculation of (i) scheduled monthly interest and principal, (ii) allocation to the reserve account for debt settlement, (iii) allocation and disbursement of accelerated payments, (iv) allocation for the Client’s operating and maintenance requirements, and (v) allocation to the contingency operating account, if any;
• Reconciled monthly bank accounts to ensure compliance with the agreed terms;
• Obtained supporting documents for the Client’s cash disbursements;
• Ensured committed payments to key suppliers in accordance with the agreed terms; and
• Highlighted any findings to the banks and the facility agent.