Refinancing a hotel
Due to a lapse of planning convents for an external function space our client was unable to host wedding and corporate events which resulted in a significant decline in revenue.
Whilst our client immediately advised the lender of the lapse in planning consent and corresponding change in trading profile the lender wasn’t sympathetic as this compromised both debt service and LTV covenants.
This situation resulted in our client being placed in “business support” with a view to a consensual disposal which wasn’t in our client’s best interest or those of the lender.
Debt restructuring plan
After a protracted period of consideration and negotiation the lender agreed to a debt write down of 50% representing £1,500,000 which facilitated a refinancing solution provided by Stewart Hindley firstly with a near-prime lender to wash away the “toxicity” of the debt write down which was ultimately refinanced with a prime lender.
This refinance solution avoided further trade disruption to our clients’ trade and provided certainty whilst planning consents were re-instated and circumvented a potential time consuming and distressed disposal process which wouldn’t have led to a greater loss to the lender than the debt write down.
For more information on how we can help restructure your debt please call us at 01488 684 834
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