A first-time property developer had borrowed family money to develop a historic listed warehouse into office space. The discovery of asbestos, trouble with the appointed principle contractor and cost overruns led to extra borrowing, personal guarantees and a delayed practical completion planned for the day that Lehman Brothers went bust in 2008.
After struggling through for two years trying to pacify the bank and his family, the bank called in the Law of Property Act Receivers, and the personal guarantees. At his wits end with debts in excess of £1.35 million and bankruptcy apparently the only option, a friend pushed him to visit Corelco’s offices.
After an interview and review of existing paperwork, the strategy was established. The negotiations with the bank were completed within one week with a full and final settlement of £0.01p in the pound. Some months following the settlement the development site went to auction and Corelco advised on the successful ‘buy back’ at £185,000.