Lender Services
Origination due diligence
Independent business reviews / investigtaing accountant reviews
Customer monitoring
Standstill agreements
Receiverships
Origination due diligence
We provide lender deal teams (for the benefit of both Line 1 Origination and Line 2 Credit) with an independent report on a prospective Borrower focusing on sustainable earnings and cash flows which in turn determine loan serviceability. We also assess the balance sheet and particularly working capital management. We are very much “forward-looking” in our approach and will critically assess a Borrower’s financially modelling projections and develop reasonable sensitivity scenarios for downsides.
Our field work will normally include site visits to interview key management as we assess the reasonableness of assumptions that are driving financial projections.
Independent business review
Lenders typically appoint us to conduct an independent review of their borrower’s financial projections. Through financial analysis and management interviews we assess the assumptions driving financial projections, develop sensitivity scenarios and provide our views of a borrower’s sustainable forward earnings and debt servicing capacity.
We provide our independent views on the reasonable options available to address issues currently impacting the borrower including ways to attract new capital via debt or equity injections or a sale of business transaction.
We also assist in developing strategies to return the business to profitability and also assist in the implementation of those strategies to ensure success. Early intervention is a key component to a successful rehabilitation and our approach is to work closely and collaboratively with all stakeholders to deliver the best possible outcome.
Customer monitoring
For higher risk-rated customers of lenders, we provide insightful independent reporting on a borrower’s regular reporting packs to lenders. We focus on cash flows, loan serviceability and the borrower’s ability to meet lending covenants.
Standstill/forbearance agreements
On behalf of lenders, we lead term sheet negotiations with borrowers where the lender may agree to forbear on its default rights for a period to time and the borrower agrees to take certain actions such as conducting an independent expressions of interest (EOI) business campaign to bring in new capital. Such a consensual arrangement is a way to for all stakeholders to avoid the consequences of a securities enforcement and unlock value for all stakeholders.
Receivership
In the absence of realistic alternatives available to the borrower, we conduct formal insolvency processes for lenders aimed at unlocking value for all stakeholders. Our focus is on business continuity, usually encompassing a “business as usual” trading period in conjunction with an expressions of interest (EOI) business campaign aimed at bringing in a new acquiring party with funding to take the business forward.
We act for financiers, financial institutions and other debt providers who have secured their debt over the assets of the Company.
Our Partners have worked in senior banking positions and are well accustomed to dealing with secured debt exposures. We regularly undertake Receivership engagements from major Australian financial institutions and non bank lenders.
Our mix of banking and corporate restructuring experience is unique, which assists our clients manage their internal stakeholders and maximises the return from business and assets subject to their security interests.
A secured creditor or the Court may appoint a receiver (or receiver & manager or controller) to take control over the entire company or over specific company property and realise the property in the interest of that secured creditor.
