MBO team paid £2.5m for Davenham loan book
By Bridging Loan Directory -
A management team at property lender Davenham paid £2.5m for the residual loan book according to BusinessDesk.com.
They completed the deal in November backed by Warrington corporate finance firm Dow Schofield Watts.
The details are included in a progress report from administrators at Duff & Phelps in Manchester who were appointed to the business in October 2011.
The failure of the stock market-listed firm left a syndicate of banks led by the Royal bank of Scotland with an exposure of around £64m.
The latest document shows £21.6m has been returned to the lenders, including the sum paid by management, and administrators expect to collect a further £1.2m. “Overall, there will be insufficient realisations to pay the banking syndicate in full,” they said.
The management team plans to use the Davenham business as the basis of a new lending venture, called Davenham Portfolio Management, targeting small and medium-sized firms. Since the administration the team has been managing the loans, recouping payments for the firm’s creditors.