Advising on major corporate finance matters, including all major UK government financial interventions into corporate structures and major UK government corporate finance negotiations
We provide specialist corporate finance advice across government and support the government’s financial interventions into corporate structures.
We also deploy our expertise in all significant negotiations between the government and the private sector, for example when the government considers whether to put money into corporate structures in support of companies in distress.
As part of this, our Special Situations team of corporate restructuring practitioners, including qualified insolvency practitioners and experienced restructuring bankers, advises ministers and departments where there is actual or likely financial distress in a company or sector.
Case Studies
Thomas Cook Group
In this project, UKGI supported CAA, DfT Policy, Finance and Corporate Finance Teams and third-party advisors for over seven months to achieve a collective HMG outcome.
The UKGI team engaged in early April 2019 to understand the situation regarding Thomas Cook Group and provide information to the DfT Policy Team so they could formulate their response. After identifying the need to ensure proper governance for the combined response between HMG Stakeholders, DfT and CAA focused on the repatriation of 150,000+ passengers while UKGI and DfT Corporate Finance assisted with options analysis and contingency planning for repatriation over the peak holiday period and options to allow the business to trade until late September when passenger numbers began to tail off.
Attempts to “Keep the Fleet Flying” throughout the insolvency process were unworkable given the safety and operational challenges. In the days before insolvency, UKGI worked with the DfT finance team to fully cost and plan repatriation, liaising with advisers and Treasury.
Thomas Cook was placed into Compulsory Liquidation on 23 September 2019 with the Official Receiver who, working with CAA, leased up to 150 private sector aircraft and crew to repatriate UK passengers. The Head of CAA hailed the repatriation “a success” as the last 329 passengers returned from Orlando to Manchester on 24 October 2019.
UKGI’s central role in this project illustrates how we leverage our expertise in different scenarios to achieve the outcomes of our stakeholders.
UK Coal
Financial interventions
The Shareholder Executive’s (prior to its incorporation into UKGI) Special Situations Team brought key corporate restructuring skills to the government’s financial interventions into both UK Coal and Hatfield – it worked with DECC and BIS colleagues to advise Ministers as to the most appropriate value for money intervention, and led on the execution of these interventions.
Repayable Launch Investment
Commercial negotiations for aerospace contracts
UKGI takes a lead role for government in the commercial negotiations with industry for aerospace Repayable Launch Investment (RLI) contracts, to support the design and development of new aircraft programmes, such as the A350XWB aircraft with Airbus and GKN. This involves working with a wide range of officials from the Department for Business, Energy and Industrial Strategy (BEIS) and HM Treasury, as well as independent financial, technical and legal advisors. These are complex contracts to negotiate and construct – each being bespoke – and involve large sums of public funding. Securing agreement with applicant companies on RLI contracts involves intensive negotiations over key contract terms, including aspects such as target returns, levy rates, product definitions, security and contract duration.