Hagemeyer N.V.
Few European corporate restructurings have been as large or as complicated as the €1.3 billion debt restructuring of Hagemeyer N.V., a business-to-business distributor of maintenance, repair, operations, electrical, and safety products with locations in 35 countries and €8 billion in revenues. Economic slowdowns in key markets, decentralised operations and troubles executing an expansion program resulted in liquidity problems for the Netherlands-based publicly traded company. Alvarez & Marsal was engaged to manage liquidity and provide advice on restructuring alternatives with nearly 30 lenders, led by Dutch bank ABN AMRO, which was instrumental in the process. After a comprehensive fact finding mission, Alvarez & Marsal implemented a short-term payment plan and communicated honestly, openly and constantly with lenders, suppliers and credit insurers. Alvarez & Marsal established considerable credibility among stakeholders, buying time for the company to restructure. Seven months of intense discussions with lenders and skillful liquidity management produced a markedly improved financial situation. Hagemeyer was able to secure new equity financing, substantially reduce debt and effectively end the crisis.
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