Ulster Bank Loan Sales
Following the further disposal of the most recent tranche of Ulster Banks "non-performing debts" by Ulster Bank to Cerberus Capital Management it is likely that you or someone you know has been affected by these transactions. This tranche was previously non-performing agricultural debt with the majority of the debt Republic of Ireland based.
So what does this mean for the borrowers?
Firstly, the entity buying the debt has no incentive to maintain any relationship with the borrower. The borrower's relationship with the Bank whether it was good or bad, is history. This can be advantageous if the relationship had deteriorated but equally, if their relationship was previously good, the rapport that they once had may no longer be there.
Secondly, the debt buyer is likely to have acquired the loan account for a discount against the original loan value. Cerberus will be looking at assets with a 'fresh eyes' approach to all loans, and are open to proposals from borrowers to refinance or settle their exposure. However, they will not get into a protracted negotiation - borrowers need to prepare for a quick deal or no deal, and any proposal put forward must represent value and be deliverable.
Thirdly, when invited to submit a proposal to Cerberus, borrowers will be given a tight time frame, so prearing the groundwork now and obtaining appropriate professional advice is vital. In addition, if a deal is agreed, Cerberus will set strict completion within a short time frame, so it is essential that the borrower has not only considered their options, but has also made arrangements for finance and legal input which are in line with this timeframe.
How can CavanaghKelly help?
CavanaghKelly has a specialist team which has extensive experience in dealing with these cases. In particular we are able to assist borrowers with preparing and submitting realistic proposals to Cerberus which have a better chance of success. We are able to participate in the negotiation process which can give borrowers the confidence to know that they have an experienced team of professionals supporting them.
What's next?
Our dedicated team of specialist in our Business Recovery and Insolvency department are here to guide you through this process and provide you with the right advice, at the right time. Contact us on (028) 8772 1194 to arrange a free of charge initial consultation.
Whilst every effort has been made by CavanaghKelly to ensure the accuracy of the information here, it cannot be guaranteed and neither CavanaghKelly nor any related entity shall have liability to any person who relies on the information herein. Information given here is for guidance only. Detailed professional advice should be taken before acting on any information contained herein. If having read the guidance here, you would like to discuss further; a member of our team would be pleased to help you.