Energy, Power & Renewables
MERU CASE STUDY
Advised power producer on successful restructuring and separation into stand-alone entity
COMPANY OVERVIEW
- Company was acquired by large American energy company in 2012
- Independent power producer that generated and provided electricity covering a mix of coal, gas, and oil generating technologies
- 32 active power stations. Distributed across eight states
- Approximately 15,400 MW of capacity
- A combination of weak electricity prices, declining economics for coal generators, and increasing regulatory pressure on fossil fuels forced the company to file for bankruptcy in mid-2017
- Company challenged by negative EBITDA and declining revenues as it faced pending debt maturity with lack of financing options
OUR APPROACH
- Extension of 3-person management team overseeing treasury, sourcing, FP&A, communication, and other corporate functions
- Partnered with advisors and management team to prepare company for a chapter 11 filing while minimizing business disruptions
- Deployed functional expertise in IT, organizational design, and divestitures to create a separation plan to stand-up a new corporate G&A center
- Utilized clean sheet approach to inform design, separation, and stand-up of company’s corporate functions, which provided a lean and flexible corporate center positioned for future M&A
OUR IMPACT
Partnered with management team to rapidly transform operational performance to realize significant run-rate improvements in commercial performance, G&A, operations & maintenance, and capital spend.
Developed infrastructure and organizational capabilities for sustained performance upon separation.
Company successfully emerged from Chapter 11 bankruptcy after reorganization of all of its businesses as a stand-alone entity.