Borrower had 2 properties which he had purchased with a loan secured on the
properties. The loan was underwater and with a balance of €1.72m. The
properties were worth today a combined €1m. The loan was acquired by a fund who
came to an agreement with the borrower to settle for €1.1m provided settlement
could be made immediately i.e. within 6 weeks. The borrower was unable to
secure finance, consuming three weeks in the process. He was now was in danger
of losing the settlement, the properties to a receiver sale, and assuming the
rump of the debt personally.
Pinemont financed €700,000 of the transaction being 70% of the valuation for 6
months allowing the borrower to cement in the debt reduction and ultimately
retain the properties. The finance was placed in 10 working days
A successful outcome for the borrower with a debt write off of €620,000 and
retaining the properties.