PROJECTS

Alinta Energy Debt Valuation, Australia

The problem

A US-based investment fund was uncertain of the fair value and risks associated with the debt it was considering purchasing from a distressed Australian energy business—Alinta Energy.

How we helped

Castalia advised the investment fund on the regulatory and market assumptions that should be fed into the debt valuation model. We helped the investor consider different scenarios and establish the price it would offer for a portion of the debt. Our analysis helped confirm that, despite being in breach of debt covenants, Alinta’s debt had greater value if the company remained a going concern than if it was liquidated.

Impact

The client considered our recommendations and the price for debt that Alinta was being offered by other investors and decided not to proceed with a purchase of a portion of Alinta’s debt.

The client

Confidential

Our team

Alex Sundakov

Alex Sundakov

Executive Director
Peter Hoogland

Peter Hoogland

Director

How can we help you?

How can we help you?