Client: A major engineering company
Project: Hudson Yards, New York City

The Challenge
Our client, a key subcontractor in the Hudson Yards development, faced significant financial and operational challenges due to the complex nature of the project and the impact of the COVID-19 pandemic. The main contractor, Related Companies, had already faced delays and cost overruns, and our client was at risk of being unable to fulfill its contractual obligations.

Our Approach
Our restructuring and insolvency team worked closely with the client to assess their financial position and develop a comprehensive restructuring plan. This included:

• Conducting a detailed analysis of the client’s contracts, financial obligations, and cash flow projections.
• Negotiating with the main contractor (Related Companies) and the project owner to secure more favorable payment terms and contract modifications.
• Developing and implementing a cost reduction and operational optimization plan to improve the subcontractor’s financial performance.
• Assisting the client in securing additional financing to support its ongoing operations and meet its obligations on the Hudson Yards project.

Results
Through this restructuring process, our client was able to successfully navigate the challenges posed by the Hudson Yards development. The client not only achieved significant cost savings, but also improved its cash flow position, and was able to continue its work on the project without interruption. This contributed to the overall success of the Hudson Yards project, which opened its first phase in 2019.