Financial Advisory
Opusllp
Full Credential Description
The case study focuses on a £4 million high specification residential development project that encountered significant cash flow challenges, primarily due to unexpectedly high groundwork costs. The developer had exhausted their working capital, halting all work on-site despite the units being 75% structurally complete. The primary lender was left with limited options, facing the prospect of enforcement action and the sale of the incomplete units, which would have resulted in no recovery for the developer or unsecured creditors. Opus Restructuring Insolvency provided a tailored solution that included active stakeholder management, where they engaged with the primary lender to rebuild trust and confidence in the project. They successfully procured an additional £400,000 in working capital, allowing the project to continue under the protection of an Administration Order. Furthermore, Opus implemented detailed budgetary and financial controls, preparing a unit-by-unit budget to ensure project integrity. They also introduced a professional project management team to oversee the timely completion of the units, ensuring compliance with NHBC requirements. As a result of these interventions, the build-out was completed, and NHBC certification was achieved. The completion costs remained on budget, and all units are now being marketed with anticipated realizable values exceeding £4 million. This strategy not only ensured that secured creditors and trade creditors were paid in full but also allowed the developer to recover their investment capital, avoiding the risk of bankruptcy.