Lenders and Debt Providers

Who we can help

Debt is arguably responsible for most of the problems which threaten the growth and sustainability of energy companies and assets, as well as being a key impediment to project viability and execution. While the total cost of debt service relative to the business's ability to support is critical, many problems occur as a result of the poor design of the repayment profile and other terms and covenants in the instrument.

Developing an in-depth knowledge of the issuer and its assets, RDE can assist creditors in preserving their capital, ensuring repayment and mitigating losses in distress situations by working proactively with the parties to restructure the debt in an optimal way for the creditors and potentially avoid lengthy and expensive insolvency proceedings. RDE can also audit credit portfolios and identify potential problems long before they occur, as well as work with debt capital providers in tailoring new debt instruments to better suit both parties and minimize risk over the term.

Institutional Equity Investors

The interests of owners are paramount. Despite a number of energy companies now distributing cash or buying back stock, there remain numerous situations where the seemingly slavish pursuit of ESG and diversity goals, together with some management teams having their own objectives, have taken board's and management's eyes off the ball. The only reason the company or project exists is to make money for its stakeholders.

Most of the problems for shareholders arise from the disconnect between management and boards and shareholders. RDE has stepped into numerous situations on behalf of shareholders and understand the challenges in aligning interests and re-defining strategy and tactics to achieve this objective. Because of its breadth of experience, RDE can take on management, board or other oversight roles, whether on an interim basis, part-time, or even full time as the situation demands. Short of stepping into the breech, RDE can also advise and coach management teams to get the alignment needed by shareholders.

Directors and Management

Alignment and solving complex challenges is not limited to creditors and shareholders. Capable management teams are frequently challenged by the expectations of stakeholders which are simply unrealistic given the assets or the business of the company, and ultimately are forced to compromise the maximization of value in service of such expectations. RDE can develop and advocate solutions which can achieve the objectives of stakeholders, while at the same time not compromising the business.

All too frequently, boards and management teams rely on specialist advisors, notably engineering consultants or investment bankers. While having specific expertise, these advisors often prescribe solutions from a narrow (or even a self-serving) perspective. While this advice has its role, RDE's approach brings together an understanding of all aspects of the business -- technical, operational, financial, stakeholder -- before proffering solutions.