Deloitte and Moelis complete sale of collapsed Axsesstoday

25 September 2019 Consultancy.com.au

SME lender Axsesstoday has been sold out of danger, following a voluntary administration process overseen by Deloitte and advisors from Moelis & Company. The company has been sold to an affiliate of Cerberus Capital Management for a sum of nearly $260 million.

Based in Melbourne, Axsesstoday is a lender for small and mid-sized enterprises in Australia. Recent times had seen the firm fall victim to its own success. While it had grown significantly in the last three years, this placed pressure on the capital structure of the business. A growing number of non-performing loans eventually forced Axsesstoday into voluntary administration earlier in the year, with senior lenders saying they were unable to continue supporting the business with on-going waivers of breaches of loan terms.

Axsesstoday appointed Deloitte restructuring services partners Vaughan Strawbridge, Sal Algeri and Glen Kanevsky to oversee the process. Following an intensive sale campaign, assisted by Moelis & Company, who advised the administrators, Axsesstoday was sold to an affiliate of Cerberus Capital Management.

Deloitte and Moelis complete sale of collapsed Axsesstoday

Speaking on the acquisition, Lee Millstein, President of Cerberus Global Investments, commented, “We are pleased to have closed the transaction and begin working alongside the talented Axsesstoday team. We look forward to supporting the company as it grows its capabilities and continues to deliver tailored financing solutions to meet the needs of Australian businesses.”

The news, which completed at the end of August by way of a Deed of Company Arrangement, was worth $259.7 million, allowing for all secured lenders to be repaid in full. At the same time, over $18 million has been made available towards the payment to unsecured creditors, with distribution of between 33.9 cents and 34.9 cents in the dollar anticipated.

Under the new ownership of Promontoria Holding 304, the business will continue as a leading provider of equipment finance solutions in Australia and all current employees are being offered on-going employment. Under the terms of the arrangement, the stock exchange-listed company Axsesstoday (AXL) will be sold separately, as it is now listed shell company, and will remain under the control of the administrators until a sale is completed.

Joint administrator Vaughan Strawbridge said, “This is an outstanding result, and could not have been achieved without the understanding and continued support of employees, funders, the broker network and customers. I am particularly pleased for the employees, who’s jobs have been preserved.”


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