Debt Resolution – conclude sale of business
Reduced debt settlement to allow the sale of the business – client saving £150k
We were approached by a client with a hotel business which they were trying to sell, as they were unable to pay the higher finance costs of an inappropiate fixed interest rate loan facility.
The hotel sale price was sufficient to cover the balance outstanding to the bank and other creditors, but wasn’t enough to pay the bank’s “exit fee” of about £150,000.
The debt was in the client’s personal names and they were concerned that they would have to make up the shortfall from their own resources. The client’s solicitors had tried, but failed, to secure an agreement with the bank.
We reviewed the case with the bank, including the inappropiate fixed rate loan, and the bank agreed to waive the fee in full – a client saving of ₤150k