Building the case for state-led financing

CONTEXT

• Client is a French car manufacturer facing overcapacity and overstaffing, and needing a €1,500m finance package

OBJECTIVES

• To raise money from public funds, subject to prior internal efforts implemented by the Group

TASKS

• Establishment of detailed business plans and cash flow forecasts for each business unit
• Incentives for departures and re-employment
• Quality program
• Drastic cuts in working capital
• Revision of the financing scheme for commercial dealers (abolishing deposits)

OUTCOME

• €1,200m in new financing, a €300m decrease in working capital
• Agreement with public authorities to match private financing up to 50%
• Debt markets (€150m) and equity (€200m – OBSA); bank loans: €850m
• All public financing was paid back before term