23/10/2015 2:48:29 PM
My Client manages a business and property portfolio based in Mt Isa and Townsville.
A summary of the company’s holdings is included below
My client’s wife is sole director of an engineering firm based in Mt Isa.
The wife’s company was liquidated in 2013 with everything finalised (or very close to) and all debts paid and closed off
Wife is sole director of the engineering firm however client was previously involved. He resigned some years ago and since that time wife has been sole director.
Many of my clients properties have been cross collateralised to support wife’s companies operations.
Current bank (who hold 100% of my client’s debt liability) have issued a demand notice to call in the loans.
As I understand it, the reasons for this are essentially due to the cross collateralisation
Formal valuations have been completed at the banks request. I’m told by the client that values have generally increased of the short/mid term.
Total gearing sits at around 62%
A rated payment history
What I’ve seen of his financials show consistent cashflows
Recent CRA’s have come up clean on all related entities
Portal is up to date
No outstanding creditor claims remain
Client has been unable to negotiate a debt restructure with ANZ.
He has also explored other prime lender options
He has considered selling some or all of his portfolio however this hasn’t proven to be a viable option for the short term.
He is seeking a 2nd tier finance solution to restructure the current debt with all property holding intact
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