Intervention in a dispute between a farmer and his lender

Following a dispute between a farmer and his lender, Quantuma successfully avoid a agricultural Receivership in favour of an exit plan.

Overview:

  • A land agent asked us to intervene in a dispute between a farmer and his bankers. The secured lender was looking to appoint LPA receivers over the farmer’s assets following a breakdown in the relationship
  • A farmer with a mixed arable, sheep and cattle business (with associated contracting works) had suffered a breakdown in his relationship with the secured lender (due to missed repayments and non-provision of company management information)
  • The lending was supported by fixed charges over the farmer’s land, which the bank was threatening to appoint LPA receivers over

Outcomes:

  • In the space of 7 days Quantuma were able to analyse the existing operation’s structure and formulate a detailed and stepped plan to deal with the issues
  • The plan was formulated in collaboration with the farmer’s solicitor, accountant and land agent
  • Due to Quantuma’s involvement a receivership appointment was not made and an exit plan was agreed with the incumbent lender. The plan included the sale of non-core land and the eventual re-banking of the client with an alternative lender, which was completed successfully

 

 

For more information on Receivership, please click here