Scenario 5
Business Advisory

Bank Appoints Receiver.

Client Presents with

  • Debt - $52 million.
  • Asset value - $98 million across 8 current businesses and mix of large properties Australia wide.
  • Two loans defaulted 2 years earlier and were placed into the Banks Asset Management Team.
  • Loan defaults were rectified within 3 months. Bank left the Client in Asset Management and charged an additional 525 basis points of default.
  • DJ Capital was contacted with scenario one day prior to Receivers being appointed.

Client Objective

  • Sell the long established business

DJ Capitals Result

Following discussion with the Bank DJ Capital confirmed:

  • Ceased appointment of Receivers. Client retained control of business.
  • Client entered a new 12 month Deed of Forbearance.
  • Interest rates were normalised resulting in savings of hundreds of thousands of dollars.
  • Client had time to sell Business for a premium amount.

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