Distressed Assets and Debt Recovery
When it goes wrong
We help lending institutions to deal with "ASBO" properties to facilitate debt recovery and minimise losses. We will carry out a detailed appraisal of the situation and write a detailed report including a rescue plan. We can then implement the agreed "road map".
Some lending institutions are unaware of the value of a project monitor monitoring the progress of the build in terms of budget and programme, and often this can lead to cost and time overruns which can ultimately erode profit on the scheme and ultimately once profit is eroded, there is then no great incentive to the borrower in order to continue to maximise profit and returns.
Often they find themselves in the situation where it is actually better to try and extend any debt to cover losses and costs incurred elsewhere. Ultimately if this process is not properly monitored by appropriate professions, it can lead to a situation where a property is effectively into negative equity long before the lenders are aware.
Our role as project monitors is critical in this regard. If, however, institutions do not have active project monitors or the project monitors have let them down, then we can help lending institutions to deal with "ASBO properties".