The expansion of an established family business by acquisition over many years had resulted in a profitable core with a large and unwieldy loss-making group structure.
The Bank had commissioned an independent report which recommended immediate administration to secure the Bank’s position. Negotiations chaired by Corelco bought the company time to formulate a strategy - Divest the Group of all trading business but to try and retain the land and buildings for the benefit of the shareholders/family.
The Bank agreed a tight performance window, but early disposals of some subsidiaries reduced the Bank debt and eased time pressure. Over the short to medium term all the trading companies were sold with the majority remaining on site on commercial leases.
The end result was the formation of family Property Co. with good income and a small amount of manageable mortgage debt, funded easily from the rental income.