HomeCase studiesBanks & financial institutionsClient take-onEnabling a business expansion by preparing a waiver of security rights

Why the client needed our help

Our client, a major independent invoice financier, was asked by an existing customer for its consent to the acquisition by the company of a major piece of equipment using a secured facility from another financier.

The terms of the all asset security granted to our client provided that all equipment whenever acquired by the company would form part of that security. In addition, the company was prohibited from granting any further security over any of its assets to another party without its consent. Without any waiver of these rights from our client, the company would be prevented from being able to use separate equipment finance to upgrade its equipment. Our client wished to enable its customer to purchase the essential equipment without compromising its own interests in the other assets of the company.

How we helped

We prepared a bespoke agreement in which our client consented to the acquisition of the new equipment by the company and to the company creating specific security rights over that equipment to the asset financier. We also made a key change to the scope of our client’s all assets debenture to ensure that the new equipment was not included in the assets of the company subject to our client’s security.

The outcome

This pragmatic and flexible solution meant that our client was able to support the continued business expansion and operation of its customer, without prejudicing our client’s position as the first ranking secured creditor.

I have had a decade long relationship with FWJ and have instructed them on a wide variety of claims, both litigation and insolvency based. I enjoy working with them as they listen to what I need and their advice is always commercial and astute. I have also been deeply impressed by their continued commitment to using technology to assist in the recoveries process. Their interactive case management system is particularly impressive delivering quick, accurate solutions together with very helpful case reporting.

Risk director, Aldermore bank

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