Slaughter and May advised Peter Cullum and Andy Homer in connection with the restructuring of Towergate

Slaughter and May advised Peter Cullum and Andy Homer in connection with the restructuring of Towergate, one of the UK’s leading insurance intermediaries. Peter Cullum was the founder of Towergate.

In particular, we advised Peter Cullum and Andy Homer on their strategic options as shareholders, holders of debt and directors of Towergate, including in relation to a possible bid for Towergate, as well as on their negotiations with the two ad-hoc committees of senior secured creditors and senior unsecured creditors whose plan was eventually decided upon by the board of Towergate.

Towergate has now successfully implemented a restructuring with over 75% of both its senior secured creditors and senior unsecured creditors by value,  which resulted in a 60% reduction in net debt for Towergate. Those parties who were, pre-restructuring, senior secured creditors and senior unsecured creditors of Towergate now hold its equity. The restructuring was implemented by two parallel schemes of arrangement and a pre-pack administration. Towergate’s debt prior to the restructuring was £1.05 billion. As a result of the restructuring, net senior debt is approximately £380 million.