Why the client needed our help
Our client, a major independent provider of commercial finance, was providing factoring services to a specialist camera and lighting business that was to be placed into administration with a view to selling the business and assets as a going concern to a private equity backed company.
The sale assets were to include the book debts that had been assigned to and funded by our client. There was significant time pressure to ensure that the terms of the sale could be finalised during the brief interim moratorium that had been created over the company.
How we helped
We proposed a structure acceptable to the administrators and private equity provider and drafted the documents that enabled the book debts and other assets to be released by our client. This meant that they could be sold and used by the purchaser company to finance its acquisition of the business. We succeeded in negotiating with the administrators and private equity investors for our client to be the first priority secured creditor of the purchasing company.
Our client was able to recover the sums due to it by its former customer and take on the purchaser as a new factoring client. This ensured continuity of the underlying valuable business, the collection of debts and preserved jobs.