Clydesdale Bank sold much of its debt book, when there was any breach of the loan conditions, to the so-called Vulture fund Promontoria (Henrico). It is a Dublin-registered financial institution affiliated to US investor Cerberus Capital Management. Recently the institution has been in the news because it has started to aggressively pursue the debts for breach of conditions. This does not necessarily mean the borrowers are behind on their payments but they are in breach of perhaps loan to value limits (LTV).
The advice here is to ensure you have a valuation done by a reputable Chartered Surveyor who might be able to challenge a valuation made by the bank's own valuers.
If your business debt has been sold to Promontoria (Henrico), affiliated to Cerberus, and they are looking to call in the loan then get in touch. If you are having any problems meeting payments, then we might be able to help by organising a time to pay arrangement (TTP) with your other unsecured creditors to free up some working capital.
If the company cannot pay unsecured creditors over a 6-12 month period, it might be best to consider going into a company voluntary arrangement or CVA. While this is an insolvency procedure, Promontoria may be more interested in the property and/or just the repayments of the loan so there is possibility that a CVA will not trigger a breach of the loan conditions.
Most importantly, if Promontoria are threatening to put the company into administration or repossess the property, there has to have been a default of the loan conditions. If you don't think there has been a default, you must contact a solicitor urgently.
Do bear in mind though that the debts were only sold on as they were in default at some point. The question is, are they still in default? This is a matter for lawyers. We can recommend a good lawyer who has an excellent track record on taking on the financial institutions where there has been mis-selling. However, this is a slightly different situation as it is unlikely there has been any actual mis-selling.
Call us on 08009700539 for advice.