Login
Tourism Adventure Group undergoes restructure
Hamilton Locke has advised voluntary administrators of the Tourism Adventure Group on the company’s successful restructure.
Emma Musgrave
Firm: Hamilton Locke (Quentin Olde and Liam Healey of Ankura Consulting in their capacity as voluntary administrators).
Value: N/A.
Area: Restructuring and insolvency.
Key players: The Hamilton Locke team was led by restructuring and insolvency partner Nicholas Edwards who was closely supported by lawyer Katrina Zivkovic. Key members of the firm’s litigation team including Brit Ibanez and Emily Pendlebury, finance team including Monty Loughlin and Mai Dang, workplace team including James Simpson, and corporate team including Cristín McCoy and Hannah Jones were also involved.
Deal significance: Tourism Adventure Group is a youth and adventure hostel business. Its restructure comes following the company being affected by COVID-19 border closures.
“The administration of the Tourism Adventure Group is a quintessential COVID story in which an otherwise successful business was impacted almost overnight as a result of the international border closures and ongoing uncertainty with respect to domestic travel in Australia,” a statement from Hamilton Locke said.
“Directors took the reluctant decision to appoint administrators following the reduction in government support with the hope of stabilising the business and to preserve value. Following appointment, the administrators continued to trade the business, however, in light of the ongoing restrictions, further lockdowns and resulting reductions in trade there were significant cash constraints.
“Key to the success of this restructure was early engagement by the administrators with supportive landlords who critically agreed to a ‘rent free’ arrangement for the duration of the administration. This meant the majority of leases were kept on foot and in turn allowed for cash preservation and a stable platform to negotiate with landlords, the secured lender and other stakeholders.”
The firm noted that the restructure was effectuated via a pooled DOCA across 16 entities.
“The DOCA was approved with the almost unanimous support of creditors, including the senior secured lender in Australia and New Zealand, and will see employees retain jobs, the compromise of significant debt accumulated after months of lockdowns and a heavily subdued trading environment and provide the best opportunity for the business to take advantage of conditions when travel restrictions ease,” it explained.
Commenting further on the transaction, lead partner Nicholas Edwards said: “The demise of the Tourism Adventure Group reflects the very stark reality of the ongoing restrictions on travel and tourism-related businesses”.
“Management took the proactive step to appoint administrators to preserve value. Key to the success of the restructure was the way the team at Ankura lead by Quentin and Liam, worked with the landlords to agree on a platform to preserve cash and allow negotiations to take place throughout the administration period.”
Emma Musgrave
Emma Musgrave (née Ryan) is the managing editor, professional services at Momentum Media.
Emma has worked for Momentum Media since 2015, including five years spent as the editor of the company's legal brand - Lawyers Weekly. Throughout her time at Momentum, she has been responsible for breaking some of the biggest stories in corporate Australia. In addition, she has produced exclusive multimedia and event content related to the company's respective brands and audiences.
Prior to joining Momentum Media, Emma worked in breakfast radio, delivering news to the Central West region of NSW, before taking on a radio journalist role at Southern Cross Austereo, based in Townsville, North Queensland.
She holds a Bachelor of Communications (Journalism) degree from Charles Sturt University.
Email Emma on:
