It’s funny how quickly the deal environment can change.
Street Talk’s page tonight is dominated by distressed-type situations, or transactions where a company’s trying to move quickly to pay down debt or provide some balance sheet support.
We have updates on two administrator-run sales - Sun Cable and Schramm Australia - as well as Bravura Solutions′ emergency equity raising and Pact Group, which is thinking about selling a business or a stake in a business to shore up its financial situation.
In the background, Scott’s Refrigerated Logistics has gone broke and will be wound up, while Tribe Brewing also went under last week, and we’ve had a few tips about other businesses also likely to hit the wall.
The common themes seem to be COVID-19 support running out, volatile trading conditions and rising costs. At Bravura, for example, the new CEO wants to clear the decks but cannot do it without capital to pay for the damage.
Elsewhere, we’ve spotted a new consultancy coming for a piece of the Australian deals market. And they’ve started by picking a team out of KPMG.
Happy reading, Anthony Macdonald, Sarah Thompson and Kanika Sood Street Talk editors
Sun Cable should have the first proper indication of what the outside world thinks of its polarising plan to export power to Singapore on Monday, when first round bids are due.
It’s touch and go for financial services software group Bravura Solutions, with investors baulking at terms for a mooted equity lifeline and unwilling to throw new money behind the group’s cost-out program.
Debt-laden Pact Group is testing buyer appetite in its high-margin plastic crates pooling business, in an effort to free up funds for other part of the business and shore up its balance sheet.
Global consulting group Alvarez & Marsal is coming for a piece of the Australian deals market, poaching a team from KPMG’s Sydney office to target private equity transactions.
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