SectorConstruction
RegionEast Asia
Size160 Employees
Path chosenTalent transfer
115 / 160
employees transferred with seniority and income
The Challenge
A mid-sized specialized construction subcontractor with 160 employees had reached the end of the road. Years of aggressive underbidding and a failure to modernize its machinery led to operational inefficiencies. By the time we were called in, the liabilities exceeded assets by a 4:1 ratio. The company had no cash to buy materials, and creditors were filing winding-up petitions. There was no viable path to save the corporate entity.
Our Solution
Our focus shifted from “saving the company” to “saving the livelihoods”. We recognized that while the management and balance sheet were broken, the technical staff (site engineers, specialized foremen and specialized workers) were highly skilled and in demand. We devised a “Controlled Liquidation & Asset / Talent Transfer” plan.
Execution
01
Controlled Insolvency
We worked with legal counsel to file for voluntary liquidation, preventing a chaotic seizure of assets and allowing for an orderly wind-down.
02
Talent Mapping
We categorized the workforce by skill set and performance.
03
Client Brokerage
We approached the company’s competitors and key clients, pitching a unique proposition: Instead of dealing with project delays, they could onboard fully formed, cohesive teams from the defunct company to finish the work directly.
The Outcome
The entity was liquidated, and the brand ceased to exist. However, we successfully brokered the transfer of 115 of the 160 employees to a former client and a competitor. These employees retained their seniority and income. The remaining staff received assistance in claiming social support. It was a “soft landing” in a hard crash scenario.