Shadow receivership

The Challenge

To recover proceeds from a non-performing loan secured by a portfolio of commercial properties. The borrower, who was a major customer of the lender, had offered many promises to address the lender’s growing concerns but had consistently failed to deliver on them. The lender was however reluctant to appoint a fixed charge (LPA) receiver due to the scale of the wider business interests with this borrower.

The Solution

We were appointed as a shadow receiver to supervise the borrower’s actions. The managing agent was changed to help increase the lender’s confidence in the accuracy of the cashflow and an asset management and disposal programme was agreed with the borrower and its delivery overseen. When a further delay was requested by the borrower, a further asset was provided as security to secure that extension of time.

The Result

The loan was repaid in full.