A 30-vessel fleet, 40 cents in the dollar, and a 10x exit.

A Singapore-based company owner of offshore supply vessels (OSVs) was in technical insolvency following a major downturn in the sector. The capital structure was complex, with debt of USD 400 million and multiple lenders across various bank hubs. The company had lost its ability to generate cash flow, and assets were undervalued and underutilised. Previous turnaround attempts had failed, and there was a constant threat of debt enforcement that would have led to a forced liquidation and zero recovery for most stakeholders.

Velarys experts led the team into a multi-bank debt restructuring, involving complex negotiations across various geographies. The restructuring team worked on a dual-pronged strategy: improving operational cash flows by returning vessels to work, and simultaneous liability management through a consensual debt restructuring. Velarys experts also implemented rigorous cash management protocols, strengthened corporate governance, and led the interface with the bank group, resulting in a sustainable debt structure that avoided liquidation.

Over a four-year period, the debt was successfully restructured, vessels were returned to work, and the company's valuation recovered significantly. The restructuring not only preserved the company but also delivered a 10x return to the private equity backers and a full exit. Today, the company stands as a clear evidence of how a surgical turnaround can restore value at the edge of insolvency.