Our Non-performing Loan specialists were initially appointed to review approximately 400 cases ranging in size, complexity and bank debt for a major high street bank.
The team’s role was primarily to appraise all issues and provide cost-effective solutions. They reviewed the current strategy in respect of each property asset and commenced discussions with appropriate parties, changing advisors and strategy where appropriate in order to maximise realisations and reduce projected losses, while being empathetic with the issues facing the customer.
Our specialists collected over £25m over the first 12 months from a standing start on an SME-focused portfolio. This released capital for the bank to relend, and also meant that the bank avoided the cost of holding this capital on their balance sheet (which was circa 7% p/a). There was a material impairment write-back, which is up to five times the fee cover.
BTG Advisory effectively provided these services at no cost to the bank and, in addition, has allowed the bank to write-back monies that were initially thought be to be irrecoverable.