Bridging loan eases cash flow worries for workplace services company
Our specialists supported a group providing workplace services.
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The main trading company in the group was about to enter a CVA, following two years of difficult trading. The causes of the difficulties had been addressed and the group was progressing with its turnaround strategy. A property company in the group had a residential barn valued at £1.5m, rented by the group chairman. The lending bank was seeking repayment for the £765,000 mortgage on this property. There was also a second charge in place for £185,000, which had provided some much needed working capital. The group did not want to sell the property, but wished instead to refinance to repay existing lenders and to allow time to achieve the turnaround and complete the CVA.
Given the complexities of the situation, there were a number of issues to overcome in structuring a proposal to lenders. We secured a bridging loan of £950,000 over a period of two years with interest being partly services. Both the bank and the second charge lender were fully repaid.
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The facility that is now in place will ensure cash flow is not adversely affected and provide the flexibility to continue the turnaround with real optimism for the future.
Still unsure whether liquidation is right for your company? Don't worry, the experts at Real Business Rescue are here to help. Our licensed insolvency practitioners will take the time to understand the problems your company is facing before recommending the best course of action going forward based on your own unique circumstances.