Various Loan Updates (Assetz Capital)

For those not aware

"Optical Lens Manufacturer

Dear Lender



Towards the end of last week we were contacted by an Insolvency Practitioner (IP) who had been engaged by the directors of the business due to some ongoing trading difficulties the business had been having. This IP had been engaged for around two weeks and had, in order to protect the business, filed a Notice of Intention (NoI) to appoint an Administrator just prior to Easter but had declined to contact Assetz Capital as the qualifying floating charge (debenture) holder until this Notice had been in place for a number of days.



The IP provided us with their initial report together with a strategy document. This strategy was to appoint them as Administrators in order to trade the business for a period of between one and three months in order to secure a sale of the business as a Going Concern. The figures we were provided with suggested a return to Assetz Capital (and therefore lenders) as debenture holder of approximately £154,000 leaving the remaining £42,000 plus accrued interest to be collected from the directors under the Personal Guarantee they have provided.



The strategy document we were provided with contained a number of omissions as well as what we considered were reasons to look more closely at the position rather than just presenting this to lenders and asking you to vote on your preferred way forward. To this end, we engaged F** A******* LLP who met with the directors and their IP on Friday afternoon and provided an update to us yesterday afternoon.



They advise that whilst there is some merit in the strategy proposed in all likelihood the process needs to be substantially quicker than that proposed by the directors’ IP. It appears that the current landlord of the borrower may be interested in purchasing the business (he is an optician and also formerly owned 50% of the borrower prior to selling out in 2013) so negotiations with him can commence fairly quickly.



As such, given directors were to appoint Administrators of their choice on expiry of the NoI at close of business tonight we have taken steps to protect lenders position by appointing F** A******* LLP as Administrators over the business this afternoon. They are to visit the directors again tomorrow with a view to quickly commencing the process of selling the business as a Going Concern and we expect a further update from them during the day tomorrow. When we have this it will be provided to lenders.



We will also seek to obtain an early understanding of the likely return to lenders from the business assets so we can prepare to pursue the directors under their Personal Guarantee should this prove necessary.



We will update lenders further by latest Thursday morning with more detail."


Removes the opportunity of a pre-pack arrangement at least.

ah, have I a broken a rule?  If so sorry.

One last minute, final rabbit out of the hat, mortgage offer magicked up for Eppy. Another 48hr delay in LPA appointment 

Email update on #82. Cov Ser***** Off*** - planned reduction in loan amount deferred from May to Aug due to proposed refinance. Any lender who objects should reply to email otherwise will proceed.

Congratulations to AC for providing an update on Essex #136 this morning without having to be publically nagged to death about it.  A positive step forward.

In case anyone hasnt received relevant comms, both #63 Boilerman & #147 WP Prop have had capital reduction payments made at short notice today so you may have unexpected cash in your accounts.