Case Study:Debt Restructuring-Partnership
Wise Owl’s client was an accountancy firm whose clients were an investment partnership of 15 individuals with partnership debt of €3m- jointly and severally guaranteed. The partnership assets had suffered a reduction in value of over 60% with income insufficient to service the debt. There were significant differences in the assets and incomes of the individual partners which naturally caused tensions within the group.
The accountant felt that Wise Owl’s knowledge of banking and debt settlements could benefit the group. A very lengthy and at times acrimonious meeting was held with Wise Owl outlining the steps which a lender would most likely take to recover its debt. The personal liability of each partner was also explained.
Wise Owl was not involved in any discussions with the lender, but its client advised that Wise Owl’s input was very helpful in persuading the investment group to agree a strategy.