Bespoke negotiates further £2 million debt reduction after £7m agreed from £14m
Bespoke Business Finance & Consultants, the consultancy division of Bespoke Bridging Finance, has successfully negotiated a further debt reduction with a big four UK bank.
Lee Selbo, Chief Executive said:
“This was one of the more challenging cases we have taken on in over 30 years of offering consultancy services. The value of the client’s assets had dropped from in excess of £14million to £7million on a RICS red book valuation. To complicate matters the client was an unlimited partnership of which 5 members faced bankruptcy. As their previous professional advisors could not find a mutually agreeable solution the bank had served notice giving 7 working days to repay the loan or have Administrators appointed.
Bespoke’s first challenge was to convince the bank to grant a 3 month extension to allow us to find a viable solution with the funds required to action it. We analysed the assets and business of the client together with their personal needs and restructured the loan and business within a strategy that made it viable and gave the partners a financial future. However we could not have achieved such a successful result without the bank’s understanding, cooperation and assistance in agreeing to accept a purchase of their debt for £5million in full and final settlement.
Difficult loans which cannot be funded are not necessarily bad loans, but just loans that are badly structured. It is Bespoke’s expertise in this field and the ability to fund that has seen our services be in demand.”
Whist for news release purposes the bank cannot be named, directors of the bank are happy to speak directly to potential clients and will confirm that:
“Working with Lee Selbo and Bespoke has been a pleasurable and positive experience. In this instance the client introduced Bespoke to the bank and it was through Lee Selbo and his team’s diligent, transparent and detailed due diligence and restructuring of the assets, together with their desire to protect the long term outlook for the client that allowed the bank to agree this level of impairment. Indeed, the bank’s confidence in Bespoke has meant that we have recommended several of our clients to them.”
Lee Selbo added:
“With each successful deal our relationship with the banks strengthens as they appreciate that we can deliver. The property assets were spread over trading businesses and residential, commercial and agricultural property with some needing to be sold or change of use and planning obtained and then developed for luxury residential apartments, houses and other leisure uses.
Bespoke, strategized, structured and negotiated the entire process. This project was part of a more comprehensive plan which required the bridging division of Bespoke to be in a position to advance £5m to a Newco in order for it to purchase the bank debt plus all purchase costs, fees and roll up of interest with development finance in place once planning had been passed.
Bespoke works exclusively via introducers helping to solve their client’s problems. “Our broad experience of businesses and how to turn them around and bring funding is what sets us apart from the majority of business advisers.
Bespoke Bridging Finance is also an equity and mezz investor – one of their equity investments being in the super-prime Regents Park development of 8 houses at Cornwall Terrace. Through its extensive network and partners Bespoke has access to specialist industry knowledge as and when it is needed.”