Client presents with the following scenario:

• Client had a bank loan of $5,000,000 to originally fund the purchase of two commercial properties. Total property value of $8,000,000.
• The bank had a charge over the client’s company and held a 1st Registered Mortgage over both commercial properties.
• Client had been in default for 5 months.
• Client had secured a contract for their services with a Government department, however creditor payment terms had been extended placing stress on the client’s cash-flow.
• A one-off refurbishment was made to one of the commercial properties which resulted in further strain on available funds.
• Client had a payment agreement with the Australian Taxation Office (ATO) for an amount of $150,000.
• The bank sought to appoint Receivers.

Client’s objectives were:

• Avoid Receivership.
• Obtain an extension from the bank of six months to enable cash-flow to stabilise after capital expenditure on refurbishment and to start receipt of monies from Government contract.
• Capitalisation of arrears.
• Remove default interest.
• Utilise six month time frame to clear debt to the ATO.
• Maintain control of the current company.

DJ Partners achieves results for clients:

Following discussion with the Bank DJ Partners confirmed:

• Ensured that no Receiver was appointed.
• Secured a six month extension with the bank to allow client sufficient time to stabilise their business and cash-flow.
• Capitalisation of arrears and the removal of default interest.
• Total debt was refinanced to another bank within the negotiated timeframe as a performing customer.