Support Services to Lenders

Now it has been established that the standard Siebe Gorman charge used by the majority of the clearing banks cannot, in general terms, create a fixed charge over the proceeds of book debts, the level of security available to the lender from the principal debtor has become more scarcely available, notwithstanding the abolition of Crown Preference under the provisions of the Enterprise Act 2002.

Lenders have to take all the steps available to them to safeguard their position and we are able to assist in providing pre-lending reviews in cases where new borrowings are being sought by customers.

We have wide experience of a large number of industries, particularly in the manufacturing and service sectors.

Similarly, where an equity finance or venture capital house is involved, we can provide pre-investment reviews to enable the investor to make an informed decision.

In certain circumstances we would consider taking a position as a mentor to the board of directors, appointed by an investor.

In cases where the company becomes financially troubled we are also prepared to accept an appointment as interim manager.

In other cases where the customer is experiencing financial difficulties we can provide an in-depth and accurate review into the company’s affairs, report on the viability and proposed future strategy of the company and, where appropriate, advise on the formulation and implementation of a restructuring or rescue plan.

Where a Turnaround strategy appears to be appropriate we adopt a fully hands on approach to assist the successful implementation of the process and interact with all other professional advisers.

If the position is critical, we accept assignments at short notice and, if required, would provide a brief oral review focussing on the position of any secured lender’s security cover, the immediate funding requirements and an assessment of the management team’s capabilities, prior to providing a full written report. This report will include forecasts of estimated future profitability and cash generation, together with a review of the longer term security position of secured creditors, in the event that trading continues.

Where neither a Turnaround or Insolvency procedure is appropriate then, if required, continued trading will be monitored at intervals to be agreed. We will provide an updated report on the position of secured creditors and other stakeholders including revised forecasts and comments on variances between actual performance and previous forecasts, together with a comprehensive appraisal of the detailed issues to be addressed by the directors, lenders and investors.