Clifford Chance represented Webuild in AU$6 billion acquisition and restructure of Clough Group
Clifford Chance, a prominent international law firm, has provided legal counsel to Webuild, a global construction group,
Clifford Chance represented Webuild in AU$6 billion acquisition and restructure of Clough Group
Clifford Chance, a prominent international law firm, has provided legal counsel to Webuild, a global construction group, in its acquisition and restructuring of Clough Group, an Australian engineering and construction company, via a deed of company arrangement. This transaction is noteworthy as it marks the most extensive successful trade-on and turnaround of a construction group through voluntary administration in Australian history.
The intricate transaction involved multiple legal documents, including a sale implementation deed, deed of company arrangement, and creditor's trust, which pertained to five group companies. Moreover, several associated share and asset sale arrangements were also a part of this process.
Simultaneously, several critical ongoing infrastructure projects in Australia underwent restructuring, including the Snowy 2.0 2,000MW hydroelectric project, the 1,700km Inland Rail project, the 300MW Tallawarra Stage B gas/hydrogen power plant, the Waitsia Gas Project, and the Lombrum Naval Base.
According to Mark Gillgren, the Finance, Restructuring, and Insolvency partner who spearheaded the transaction, this accomplishment underscores Clifford Chance's ability to guide clients through complex cross-border restructurings and insolvencies.
"We are delighted to have been part of the team supporting Webuild to achieve such a remarkable outcome for the Clough business, its people and everyone dependent on the successful delivery of these landmark projects. We are proud of everything that the collaborative approach we bring as a firm, with our clients and with all other stakeholders has yielded. We wish the Clough and Webuild teams every success going forward," Gillgren added.
Mark Gillgren received support from a team of experts in Finance, Restructuring, and Insolvency, including Scott Bache, James Hewer, Genevieve Guiney, Joe Osgerby-Lacey, Isabella Bogunovich, Ee Ming Wong, Amelia Hirst, and Belinda Brady.
The Corporate M&A team, consisting of Mark Currell, Nicole Backhouse, Sarah Jenkins, Sarah Bowe, and Evan Thomson, also provided assistance, along with the Construction team, comprising Spencer Flay, Sandy Hall, Jamie Calvy, Emma Clarke, Simon Smith, and Sean Marriott. Additionally, Litigation experts Naomi Griffin, Penelope McCann, and Lana Ristic, as well as several others, offered their support.
The transaction involved the collaboration of Clifford Chance teams in Italy, Singapore, Hong Kong, New York, and London to handle the cross-border aspects of the deal.
"Webuild should be commended for their energy and determination to rescue this iconic Australian business from collapse. They have demonstrated to the market that it is possible for contractors and project proponents to resolve their differences and put major construction projects that face difficulties onto a sustainable path forward for the mutual benefit of all," Spencer Flay said.
Litigation partner Fabio Guastadisegni and senior associate Michele Curatola helped to coordinate the relationship with Webuild in Italy.
Fabio Guastadisegni commented, "We have been very pleased to assist Webuild, one of the most prominent Italian companies fostering Italian entrepreneurship and excellence throughout the world."
Webuild's acquisition of Clough Group, along with the successful restructuring of ongoing infrastructure projects, has established it as a top construction and engineering firm in Australia. The transaction involved acquiring over AU$6 billion of uncompleted works and ensuring continued employment for 1,100 Clough employees.
Webuild, formerly known as Salini Impregilo, is a global leader in constructing large and complex sustainable mobility projects such as rail, metro, bridges, and ports, as well as hydropower projects including dams and power plants.
They also specialise in water management solutions including desalination and wastewater treatment plants, irrigation dams, as well as green building projects like industrial buildings, airports, stadiums, and hospitals.