We were instructed by a south east developer to negotiate with a non UK bank following the downturn in the Market. With the debt exceeding £100 million and the assets potentially valued at £70 million the bank were looking for solutions that suited their own current requirements. There was more than one asset to manage and we had to contend with other parties in the Market attempting to take control of the assets by way of management or outright purchase. All sites had no benefit of planning however one had an outstanding application with the others offering a clear defined planning line.
The negotiations were protracted and complicated due to major Market interest however we offered the bank a solution that suited there balance sheet and provided income for the developer with a potential bonus when planning was achieved.
With extensive debts and outgoings the company approached us to negotiate with creditors and restructure along with changes to the advertising to create further clients.
Following creditors meetings and looking at the financial position of the company it was agreed that we would offer creditors a solution and recommended the company cease trading. We assisted the Directors in the process taking the stress from them and protecting their interests
Following the downturn in the property market we were approached by leading developer to deal with the negotiation of the sale of a development site that had just received planning. The special purpose vehicle that held the asset also had significant trading losses and loans from Directors. The bank debts exceed value of the asset at the time by £1 Million.
Our brief:
·Retain the limited company
·Negotiate with the Bank and attempt to secure asset on reasonable terms
·Prevent other parties from securing asset direct from Bank
·Once agreed work with lawyers to secure a deliverable contract
·Secure joint venture partner and negotiate contract terms.
Development of apartments in excess of 150 units, the site had run into difficulties with valuations now less than current debt. Merranti negotiated with the developer and bank to deliver the product to practical completion and then create and manage a marketing campaign resulting in an increased development return to the bank and a management fee to the developer of over £500,000.
A small development located in main town in Surrey had failed to sell; the Bank had agreement with the developer that if not sold by 2010 then the developer had a guarantee buy back at 95% of build cost which exceeded 2009 price levels by £1 Million giving the developer a cause for concern.
We were requested to assist with the sales of the unit, numbering in excess of 20, and negotiate with the Bank to bring a successful conclusion.
Development of apartments in excess of 150 units, the site had run into difficulties with valuations now less than current debt. Merranti negotiated with the developer and bank to deliver the product to practical completion and then create and manage a marketing campaign resulting in an increased development return to the bank and a significant management fee to the developer.
The client was in need of selling the asset however the company had a second charge against it and any proceeds would have been distributed to the main holdings company that was unable to distribute the funds.
We were instructed to:
·Negotiate sale with potential purchaser
·Negotiate with second charge to arrange security on an alternative asset
·Work with Lawyer and Accountant to deal with Company Sale contract
·Give consideration to most efficient use of funds from sale.
All Merranti Case studies are genuine achievements by the company. Information may be slightly altered to protect our clients and all names, if listed, have been changed to protect our client’s privacy, which is of utmost importance to us.
Our case studies are not an exhaustive list of our services however they give a good indication of the way Merranti can make a difference to your business or project.
