SIT­U­A­TION

• The com­pa­ny is a lead­ing provider of Facil­i­ty Man­age­ment (FM) and Tech­ni­cal Facil­i­ty Man­age­ment (TFM) ser­vices. The com­pa­ny is a transat­lantic busi­ness with facil­i­ty man­age­ment in Europe, the Unit­ed States, and Mexico.
• 2020 rev­enues reached CHF 71.2 MM with CHF 2.4 MM in EBIT­DA, with two major acqui­si­tions in UK and Switzer­land. Prof­itabil­i­ty began to decline to CHF 200K EBIT­DA on CHF 92.2 MM rev­enues in 2021, due to the imple­men­ta­tion of new COVID secu­ri­ty mea­sures (i.e. dupli­ca­tion of staff, more com­plex clean­ing pro­ce­dures) and the dis­con­tin­u­a­tion of the TFM (project-based) business.
• The com­pa­ny recov­ered in 2022 with CHF 87 MM rev­enues and CHF 1.2 MM EBIT­DA, but acqui­si­tions in the UK and Switzer­land sig­nif­i­cant­ly affect­ed cash-flows along with a back­log of invoic­es and new pre-pay­ment con­di­tions from suppliers.
• Chi­ron was engaged as Invest­ment Banker and Finan­cial Advi­sor in Octo­ber 2022 after an unsuc­cess­ful self-financ­ing effort. At the time of the engage­ment, the com­pa­ny was in default with its senior bank lenders in sev­er­al coun­tries and had total debts of over CHF 9 MM. 

OUT­COME

• Chi­ron suc­cess­ful­ly raised a CHF 5.5 MM res­cue financ­ing with pre­vi­ous­ly unused col­lat­er­al, which were crit­i­cal to improv­ing liquidity.
• Chi­ron suc­cess­ful­ly nego­ti­at­ed with the 9 incum­bent senior bank lenders for for­bear­ance, which allowed the com­pa­ny to obtain a six-month win­dow to sta­bi­lize the com­pa­ny’s long-term con­tracts and asso­ci­at­ed pre­dictable cash flows pri­or to the restructuring.
• Chi­ron is cur­rent­ly restruc­tur­ing the company’s fixed term debts and obtain­ing a new CHF 20+ MM revolv­ing cred­it facil­i­ty increase its liquidity. 
• The ongo­ing restruc­tur­ing and new financ­ings will strength­en the Company’s finan­cial sta­bil­i­ty, allow­ing it to imple­ment an inter­na­tion­al build-up strat­e­gy in 2024 and fur­ther devel­op­ment of its US based facil­i­ty man­age­ment operation.