Home Foreclosure - Scenario

A supplier was taking action against an owner of a small business to enforce a personal guarantee for a debt owed by the company. The supplier had listed a credit default, which had caused the company’s owner difficulties in getting additional finance from their bank. As the debt was not being paid, the supplier was threatening the appointment of a Trustee in Bankruptcy.

A positive way forward

Corporate Guardian sources a short term loan that enables the company to pay one third of the debt in a lump sum. A suitable plan is negotiated to pay the rest of the debt over a 6 month period. Corporate Guardian holds a watching brief over the company to ensure that the payment schedule is adhered to and that the pressure on the business is removed.

Please note: These scenarios are intended to illustrate the type of problems that our clients experience and the possible remedy. They are not intended to portray real companies or real case studies.

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