Many banks make facilities available to a whole group of companies and take collateral from all the companies in the group. Accordingly when a borrower wants to restructure part of the group, by selling off part of the business or by moving assets or businesses within the group or bringing in an external investor, the Bank must be approved at an early stage. We are often involved at this point, working closely with your accountant.
A new facility agreement and new security may well be required and, although these documents sound complex, we aim to make the process relatively quick and easy.
If part of a trading group gets into financial difficulties and it is necessary to bring in an insolvency practitioner (such as an administrator), Our Banking team give practical advice at all stages and make the directors fully aware of the responsibilities of the rest of the group. Often a Bank will be reluctant to force a whole group into insolvency if there are parts that can be saved. Additional equity or alternative security may well be required and our Banking and Corporate teams would be involved throughout your negotiations.
When stressful times hit businesses hard, there is no substitute for getting good advice in clear terms and at a reasonable price.