Law firm works on deal to rescue firm which was once valued at $1bn
Bristol law firm Osborne Clarke has advised on the sale of the business and certain assets of Railsr – formerly Railsbank – to Embedded Finance.
The embedded finance firm once worth nearly $1bn, announced that it has been acquired by a shareholder consortium.
As part of the deal the company is going into administration so that it can continue as a going concern as it restructures.
The transaction included Railsr’s pioneering finance platform and banking-as-a-service business, as well as a number of subsidiaries in its group, including several of its international subsidiaries and its UK regulated subsidiary, PayrNet Limited, an authorised electronic money institution regulated by the Financial Conduct Authority.
The sale, which followed the appointment of Mark Firmin, James Cook, and Richard Beard, of global consultancy firm, Alvarez & Marsal, as joint administrators, secured the future of the business as a going concern.
It provided continuity of service for millions of consumers and businesses around the world who rely on finance products that operate on Railsr’s platform, including embedded banking, card, credit and rewards services.
Osborne Clarke’s international team was led by its head of restructuring and insolvency, Will Gunston, alongside restructuring partners Nigel Boobier and Douglas Hawthorn, and payments specialist partners Paul Anning and Paul Harris.
They worked closely with Partner Eric Romba in Germany as well as partner Tomasz Olkiewicz and Senior Associate Aleksandra Sztajer in Poland.
The team was supported by restructuring lawyers Claire Bundy, Aisling Connaughton, Sam Furse and David Antrobus, payments Legal Director Clare Burman, employment Associate Director Nicholas Haywood, and Trainee Solicitor Niamh Haughey.
Raja, Darryl & Loh, Malaysia; Disini Law, Philippines, Lowenstein Sandler, US; and Dentons Rodyk & Davidson, Singapore, advised Railsr group company boards in their respective jurisdictions.
Will Gunston, head of Osborne Clarke’s restructuring and insolvency team said: “The transaction was complex and challenging and required the input and coordination of a number of specialist service lines within the firm.
“The support of Alvarez & Marsal and the Financial Conduct Authority in achieving the accelerated sale was key. Working as a team to get the transaction over the line was critical and exemplary.”
Osborne Clarke’s international Restructuring & Insolvency group handles a wide variety of instructions for a diverse client base that encompasses creditors, debtors, accountancy firms, insolvency practitioners and turnaround professionals.
The team has advised in a number precedent-setting mandates including the restructuring of Wirecard UK, fintech business Neyber, the special administrations of Viola Money and Express Money (the first and so far only uses of the new payments and e-money special administration regime), and retailers Peacocks, Bonmarch, Laura Ashley and Oasis/Warehouse.
