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Getting the High Court’s approval: Linklaters, Sullivan and Ropes advise on Towergate’s £1bn restructuring

Linklaters, Sullivan & Cromwell and Ropes & Gray have advised as Towergate secured approval from the High Court on its plan to restructure around £1bn worth of debt

The firms landed roles in advising the UK insurance broker Towergate on new terms for a debt restructuring which saw its unsecured creditors becoming majority shareholders with a debt-equity exchange plus an injection of new money.

Business restructuring partner James Douglas at Ropes & Gray advised the unsecured creditors which included Highbridge Principal Strategies, KKR Credit Advisors and Sankatay Advisors. The trio will become the new majority shareholders with 80.6% of the group after providing £300m in cash.

Meanwhile US firm Sullivan & Cromwell acted for the senior secured creditors which will take up the remaining stake of the company, as well as receive a £250m pay-out from the cash put in by the unsecured lenders. The US firm’s team was led by finance partner Chris Howard. Linklaters banking partner Bruce Bell advised Towergate

The court approval was won for its plan to restructure at a hearing on 27 March and comes after Towergate was warned in the last quarter of 2014 that it may face a liquidity shortfall in the first quarter of 2015.