VDP was a private equity fund, located in BVI, holding a wide range of portfolio companies involved in water bottling, dairy products, and confectionery products. The portfolio companies, valued at over $1 billion, were located in the Commonwealth of Independent States (“CIS”) and the Balkans.
The portfolio companies were suffering from serious liquidity issues. The majority of VDP’s loans were in default and under threat of foreclosure. The portfolio companies were also the subject of freezing orders issued in Russia, which had a chilling effect on any sale efforts. This fact, combined with conflicts between stakeholders in the fund, limited VDP’s ability to successfully exit its positions.
KRyS Global was appointed trustee, following a dispute between the limited partners, to manage, oversee, and liquidate VDP’s holdings.
KRyS Global assumed control of the operating entities, established oversight of local management, and negotiated with the companies’ lenders. KRyS Global was able to stabilise the business so that sale efforts could move forward and maximum value could be obtained.
Simultaneously, KRyS Global successfully dealt with litigation arising out of Russia, which sought to freeze shares and issue warrants against the companies’ bank accounts.
Within weeks of its appointment, KRyS Global found a buyer for VDP’s riskiest assets and executed a sale. Then, following a robust sales process, KRyS Global entered into a sale agreement of the primary remaining assets.
KRyS Global was successful in a) addressing various legal challenges in difficult jurisdictions, b) negotiating with the lenders to restructure debt and amend terms throughout VDP’s portfolio, and c) execute the sale of the portfolio assets.
As a result, maximum value was achieved for VDP’s stakeholders, at a level much higher than initial expectations.