HomeCase studiesUsing our commerciality to help an asset based lender mitigate a significant loss

Why the client needed our help

Following the twin problems caused by the insolvency of a significant debtor and the financial troubles experienced by a key supplier to the client of an asset based lender, it became apparent that there was a real risk that our client – the asset based lender – would suffer a significant loss on its account.

How we helped

We were able to liaise with the Insolvency Practitioner of the debtor to secure certain payments relating to the notified debts and to identify and recover various goods which were subject to a retention of title provision in the relevant contract between the parties.

As a result, the asset based lender was able to recover and sell those assets to an independent third party and mitigate its potential loss.

In addition, we were able to work closely with the directors of the asset based lender’s client and advise upon a proposed restructure of the business. Having made demand upon certain individuals pursuant to the terms of deeds of guarantee and indemnity given by them we were able to secure the interests of the asset based lender against various assets to allow a re-finance to take place and an amicable and orderly repayment of the outstanding balance was commenced.

The outcome

Our commercial approach meant that we were able to undertake a refinance of the ABL’s client and ensure a complete satisfaction of its account without taking precipitous legal action and / or incurring unnecessary legal costs. The asset based lender was fully secured throughout and was able to maintain (and enhance) its relationship with its client by showing that it was willing to be patient and work to achieve a mutually acceptable outcome to all.

Key contacts

Chris Willison

Chris Willison

Partner

Mike Lockton

Mike Lockton

Partner

View full team

Contact us in confidence