Ashurst has advised CarVal Investors (CarVal) as lender and equity investor in a restructure of the assets and liabilities of VGL Group (VGL) and its subsidaries.

VGL, a company based in Western Australia, and its subsidiaries provided mining services to a number of Australian mining operators. Voluntary administrators Richard Albarran, Brent Kijurina and Cameron Shaw of Hall Chadwick were appointed to each of the VGL Group companies on 22 April 2015. The restructure was complex and involved:

• Funds advised by CarVal acquiring the existing senior debt held by CBA in VGL Group
• Entities controlled by CarVal acquiring the majority of issued shares in VCS Holdings with entities controlled by Director, John Silverthorne, holding the remaining shares;
• VCS Holdings acquiring certain assets of VGL, including the shares in VCS and VEH; 
• VCS Holdings acquiring certain assets of Mineworks, VF and VUS;
• VGL entering into a deed of company arrangement with its creditors pursuant to which certain funds paid by VCS Holdings to VGL was distributed to certain of its creditors;
• Each of the VGL Subsidiaries entering into a separate deed of company arrangement with their creditors,  the terms of which certain funds paid by VCS Holdings has been contributed into a creditors trust to settle certain debts owed to their respective creditors in accordance with the terms of that trust; and
• New secured mezzanine debt to be provided to VCS Holdings and its subsidiaries to fund their ongoing working capital liabilities going forward.

The was a significant restructuring of a troubled Australian mining services business which will now continue into the future.  This deal was completed against a background of a difficult mining environment.

The Ashurst team was led by partner James Marshall, who was assisted by senior associate Sarah Worrall and lawyer Carone Huang (RSSG); with partners David McManus and Carl Della Bosca, and senior associate Peter Akin (Corporate); with partner Brenton Key and senior associate Wendy Ho (Banking).

Commenting on the transcation, lead partner James Marshall said: "It was a great pleasure to assist CarVal in the recapitalisation and restructuring of the Viento Group.  This deal highlights the way in which businesses exposed to the downturn in mining can be restructured through a voluntary administration process to emerge with a strong balance sheet and a bright future. Value was preserve for all stakeholders by means of the close co-operation between the investor, the directors and the administrators to ensure that the business was able to continue throughout the process as a going concern."