Refinance – Getting Back on Track after Bank Relationship Breakdown

Our client Hayley who owns a mixed use retail and residential property in one of Sydney’s inner city suburbs was faced with a short term cash flow deficit after one of the retail tenants fell behind in their rent causing a loan covenant breach.

Despite her voluntarily selling a non core property asset to reduce debt and inject liquidity, the Bank hastily appointed a Receiver.
Arch was able to look past the Receivership and provided a $2.9 million refinance and cash out solution on attractive terms following the breakdown in the existing banking relationship. Arch also assisted in negotiations with the Receiver and the Bank resulting in a mutually beneficial refinance package. It looked at the circumstances of how the Receivership occurred and provided a solution to the borrowers by recognising a desirable property with a strong rental profile.

As Hayley commented, “Arch listened to me and was very responsive when other banks were not. I retained my property and avoided a forced sale which might have resulted in a $1-2 million loss in my equity”.