Aberdeen Schools Project Rescue

McClure Naismith - Lead Role in PPP Restructure

The Firm’s Projects Unit recently completed the complex re-structuring of the Aberdeen City 3R’s PPP Project, originally funded by Icelandic Bank Landsbanki.

Perhaps inevitably the funding documentation had never envisaged a situation involving lenders being unable to maintain funding, and lawyers in the Firm’s banking, projects, and construction units had to chart new territory, working closely with construction contractor Pihl UK Limited and Aberdeen City Council, to explore all the avenues for alternative funding while seeking to maintain continuity of construction work.

In addition, freezing orders had been imposed on Landsbanki in the course of the crisis and the re-structuring could only be completed once these had been lifted.

“McClures demonstrated that we have market leading expertise in tackling unprecedented situations in the PPP sector” commented Projects Partner Euan Mitchell, “and highlighted the advantages of our London office where we drew upon our significant experience in banking and re-structuring matters to address the complex contractual and security issues in circumstances which were new to all concerned”.

Separately, in another unexpected consequence of the credit crunch, McClures represented Waverley Housing Association in its £21m refinancing of its committed loan facilities which, although originally provided by Northern Rock, had been sold on to a division of Lehman Brothers. Working closely with the Board of Waverley and its other advisors we had to address once again a situation not envisaged by the funding documents namely lender insolvency, and balance these against Waverley’s statutory obligations under the Housing (Scotland) Act 2001 under the watchful eye of the Scottish Housing Regulator. However, the refinance was achieved with Barclays Bank in a tight lender market thereby ensuring that Waverley has stable and committed funding for its long term tenant needs.

20/10/2009 16:30:00