Scenario 4
Business Advisory

$2,000,000 in assets and $7,500,000 owed to the bank.

Client Presents with

  • Client had a loan with a bank for $2.8 million secured by two properties. Each property was valued at approximately $1 million.
  • Bank had a charge over Client's current company.
  • A Personal Guarantee was in place for the sum of $5 million for a separate company in 2004. After providing the guarantee, Client resigned from the company and the company was subsequently deregistered by ASIC.
  • Bank is claiming approximately $7.5 million under the loan and the Guarantee.
  • Bank has appointed Receivers to the Client's current company.

Client Objective

  • Avoid Receivership.
  • Obtain release of the Personal Guarantee.
  • Obtain a time extension to sell the properties privately, therefore avoid mortgagee sales and achieve the best possible price.
  • Regain control of the current company.

DJ Capitals Result

Following discussion with the Bank DJ Partners confirmed:

  • Compromised Bank Loan to accept $2 million.
  • Refinance of the first property, the Client’s home, from the Bank.
  • Time extension of 3 months to sell the second property. Sale was achieved during this time.
  • The Bank finalised an agreement to accept $450,000 over a 3 year period, interest free, in compromise of the remaining $5 million debt claimed under the guarantee.
  • Receivers were retired and control of the current company was returned to the Client.

Other Scenarios

Scenario 4
Business Advisory

Debt Outweighs Asset Value.
Asset Value: $2,000,000
Bank Debt: $7,500,000

Scenario 5
Business Advisory

Bank Appoints Receiver.
Asset Value: $98,000,000
Bank Debt: $52,000,000

Scenario 6
Business Advisory

Lender Appoints Receiver.
Asset Value: $41,000,000
Bank Debt: $27,000,000