CASE STUDY 1

CLIENT – LEADING INTERNATIONAL LAW FIRM

DEBTOR – METALLURGICAL COMPANY

Our client had provided legal and international structuring advice for a well-known Russian company in the metals industry. Our client decided that it was inappropriate to take legal action against its own client to recover their unpaid fees. The debtor had been a significant client of our client for a long period of time and had paid substantial fees. The work completed was of a highly confidential nature involving multiple client offices.

We met with our client representatives, researched the company, its senior management and developed a collection strategy. The debtor had suffered a significant period of financial distress preventing it from paying many of its obligations.

While the debtor was initially reluctant to engage into negotiations, we managed to persuade them that a solution was in the interests of all parties concerned. The debt was paid in full plus some additional amounts which had never previously been billed.

Once the debt had been paid, we brought the client back together again with the debtor and successfully reinstated the business relationship. Trust has been re-gained on both sides and our client now continues to earn regular substantial fees.

Our collection approach is not only to collect money but also to repair long-term relationships for our clients.

CASE STUDY 2

CLIENT – WELL KNOWN INTERNATIONAL AUDIT FIRM

DEBTOR – EASTERN EUROPEAN METALS & MINING CONGLOMERATE

Our client provided due diligence and M&A advice for a well-known Eastern European conglomerate primarily owned by two wealthy shareholders. The deal was highly price sensitive.

Our client continued to work for the debtor on the deal at the same time as Carlton were engaged to recover large (and increasing) fees.

The decision to use Carlton was not simple. We had developed significant trust with our client that gave them confidence to bring us in as independent arbitrators.

Carlton negotiated a settlement directly with the owners working in very close timely consultation with our client.

The deal continued with our client.

Carlton’s work is highly confidential. We never disclose our clients, never approach third parties without client permission and never agree settlements without our client’s authorisation. We understand that protection of our client’s brand name & reputation is paramount.

CASE STUDY 3

CLIENT – TWO BIG FOUR ACCOUNTING FIRMS AND A MAJOR INTERNATIONAL LAW FIRM

DEBTOR – OIL & GAS COMPANY

We represented three different professional service clients, including two Big Four accounting firms and a well-known international law firm, against the same European company in the oil & gas industry.

Our clients provided a mixture of tax, legal, valuation and fundraising services related to an acquisition target.

The debtor switched between advisors, leaving unpaid fees behind if the acquisition did not proceed.

When the debts were passed to Carlton for collection, some fees were several years old, there had been a complete breakdown in communications and none of our clients had had any recent contact with the debtor.

Carlton managed not only to reinstate contact with the debtor but also successfully locate, approach, and negotiate directly with members of the high net worth shareholder family in South America.

While the debtor was initially reluctant to engage into negotiations, we managed to persuade them that a solution was in the interests of all parties concerned. The invoices of all three of our clients were paid in full.

Carlton was successful in negotiating a multiple solution for two Big Four accounting firms and a major international law firm with the same debtor. All parties had previously felt that this was simply not possible prior to our work.

CASE STUDY 4

CLIENT – LARGE US PRIVATE EQUITY CHARITABLE FUND

DEBTOR – MEDIA COMPANY

Our client disbursed loans to an underfunded sector in Russia. The aim of our client was to bring this sector up to comparable international standards. Our client was funded from a selection of well-known international charitable funds and donations from high net worth individuals. The investment goals of our client were both financial & social/political.

The collection goal of our client was to inform the market that it does not tolerate unprofessional behaviour amongst its loan recipients. At the same time, the Fund, given its social/political goals, did not wish to attract any adverse publicity within Russia. Our collection approach therefore needed to be very carefully balanced.

We received a full brief from our client, investigated the owners of the company, learnt about their other business ventures, their relationships, their assets, their income streams and their ability to pay. Based on this, and in very close consultation with our senior client representatives, we identified levers acceptable to play on, approached, negotiated, and agreed a repayment schedule with the debtor.

Carlton never gave up hope even though the solution took 2 years to achieve.

Carlton’s collection approach is tailor made for each client taking all circumstances into consideration.

CASE STUDY 5

CLIENT – TWO UK-BASED CONSULTING ENGINNERING, DESIGN AND PLANNING FIRMS

DEBTOR – REAL ESTATE DEVELOPER

We represented two mid-sized UK based clients who had provided engineering and design services to a Middle East based real estate developer.

The real estate project was being developed jointly with a Middle East state-connected organisation.

The identity behind the real decision makers within the state connected company was not clear.

The entire project had ground to a halt when Carlton was mandated. There was no money in the development company and management had changed several times.

The currency where the real estate project was located had also significantly devalued.

Carlton, through its connections, and communication skills (in the local language) managed to locate, meet, and negotiate with the key decision makers.

Following lengthy negotiations, a repayment plan was agreed, payable in several tranches and taking into account currency fluctuations against the USD and Euro invoices outstanding. It was also agreed by all parties (with appropriate documentation) to accept payment from a third party.

Carlton helps clients in local jurisdictions where clients have no office. We are able to successfully adapt, navigate local cultures, languages, currency, and capital control obstacles. We are well experienced in dealing with state owned or partly state controlled debtors.