Have Receivers been appointed? Can your current lender provide you with speedy solutions?
Secured Lending was approached by an Insolvency Practitioner who was advising the Director to assist with a short term bridging facility to allow for an orderly sale of a property.
Due to COVID, the Borrower had incurred significant trading losses and was unable to meet their ATO obligations and service an existing business loan. The Borrower had approached the Bank to sell the assets under their own steam but the Bank appointed a Receiver. Knowing the Receivership would impact any asset sale campaign and mindful of receivership costs, the Borrower and Insolvency Practitioner approached Secured Lending as they were seeking speed and certainty.
Secured Lending was able to provide funding of $6.4M to payout the existing mortgagee and retire the appointed Receivers. Secured Lending took a first mortgage security over two commercial units allowing a sale process to proceed.
Fast forward 4 months and the Borrower sold the assets for a premium price allowing sufficient funds to repay Secured Lending in full, with significant surplus capital for the business.
A great example of an advisor bringing significant value to their client under duress conditions.
Check out how Secured Lending deals when a Receiver or Adminstrators have been appointed, or alternatively, contact us at 1300 795 175 or email info@securedlending.com.au
