‘Unbelievable Debt Solutions’ £3.2 Million In Debt Written Off

AAB were engaged by a prestigious, Northern Irish family property business, who had realised exponential growth through specialist-turnkey contracts but found themselves crippled by pre-recession property debt.

The Challenge

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 AAB to outline their options, believing Bankruptcy was the only solution.

The Outcome

AAB, 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 AAB 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.