To assess their situation with a view to undertaking this hotel business recovery.
As commercial property finance experts, Stewart Hindley & Partners immediately undertook:
- a business review, which identified the reasons for the decline in trade and the corresponding loan arrears
- to present these findings, together with a business recovery plan, to the lender. However, because they were more than 3 months in arrears, the lender regrettably declined to suspend the summons despite a loan repayment schedule based on a secondary debt.
At this stage, the Stewart Hindley team was able to step in to represent their clients in the County Court and had the action suspended.
- The hoteliers were able to recover their trading position and to repay their arrears over a period of 12 months.
- Stewart Hindley & Partners then successfully renegotiated the terms of the client’s hotel loan on a fixed rate basis over a longer term. This ensured the certainty of debt repayments going forward.
“We were constantly managing our cash flow and trying to find ways to repay our mortgage arrears which resulted in a loss of focus on the revenue required to meet our commitments. We had in effect buried our â€œheads in the sandâ€ when it came to the mortgage arrears.
“It became apparent after meeting with Stewart Hindley & Partners that we were not alone in this situation as they had acted for clients in similar circumstances and had achieved a positive outcome which gave us confidence from the moment we met with them.
“They recovered our business, provided additional secondary debt and importantly dealt with the lender with whom we now have a good and positive working relationship without the costly need for hotel refinancing”.
If you would like to know more about our hotel business recovery services, please email us for further information.