A decade post-recession the client could no longer ride the negative equity wave and found themselves found themselves crippled by:
- Personal Debt of £12.3million;
- Company Debt of £2.5million;
- Negative Equity of £3.2million
- Multiple lenders unwilling to re-negotiate rates:123 imminent property repossessions;
- Threatened drawn-out court proceedings, extortionate fees and a ruined reputation.
After exhausting all avenues with other advisors, the client approached PKF-FPM to outline their options, believing Bankruptcy was the only solution.
PKF-FPM, different from other accountants and advisors, ignored the easy Insolvency route and delivered the best solution for the client’s needs. Devising an ethical, regulated and creative turnaround programme via a formal insolvency procedure in interests of both client and lenders, the client avoided bankruptcy and PKF-FPM maximised benefits to all parties, including:
- Write down of £3.2 million (against £4.5m debt);
- Retention of properties under existing terms and rates at market value;
- Ready solutions for the lenders, avoiding the need to take re-enforcement action;
- Retention of trading business by the family;
- Fair and equitable return to lenders.