Debt Resolution – business loan sold
Reduced Debt Settlement Following the Sale of the Loan to a Venture Capital Firm – client saving £600k
Following the bank selling their loan to a venture capital firm a business was faced with the demand for full repayment of the debt despite having never missed a loan repayment.
The venture capital firm appointed LPA Receivers to take control of the property portfolio and the directors were faced with the loss of their business and a potential claim on a personal guarantee.
Our review of the banking relationship highlighted a number of concerns which could impact upon both the LPA Receivership appointment and the validity of the guarantee itself.
We assisted the directors in setting aside a statutory demand made by the venture capital firm and ultimately we successfully negotiated a settlement for £2.1m which included the return of the property portfolio to the directors – a client saving of approx ₤600k.