At MBM Commercial we advise clients on all aspects of dealing vulture funds such as Promontoria, Cerberus, Clipper, and their agents Engage Commercial. We help our clients defend repossession, sequestration, and personal guarantee actions raised against them. To date, we have helped our clients negotiate over £5M of debt forgiveness, allowing them to refinance with new lenders.
What is a vulture fund?
A company that buys up distressed investments or underperforming debt usually from banks. The debt is typically bought as large debt books or portfolios. In most cases, the vulture funds such as Promontoria, Cerberus and Clipper seek to realise their assets as quickly as possible, aggressively seeking to enforce the debt by the most expeditious method possible, often via the enforcement of personal guarantees, or via service of a Charge for Payment (a pre-requisite for any sequestration (bankruptcy) process.
How Can We Help?
We can assist clients in a number of ways:
Advising on the enforcement of personal gurantees
Vulture funds often hold personal guarantees, which have been assigned to them, that were previously granted in favour of the original lender. These personal guarantees may contain legal defects which render them unenforceable. The circumstances in which the guarantees were granted in favour of the original lender, including what advice was taken by the guarantors at the time of signing, may also have a bearing on their enforceability by vulture funds.
Defending sequestration actions
Vulture funds often raises actions to seek to have clients sequestrated (made bankrupt) in order to recover their debt. We can provide you with specialised advice and representation to help you defend any sequestration proceedings. In additional to expert legal advice, we work closely with a network of Insolvency specialist that can deliver you tailor made advice in structuring your personal solvency position.
Defending repossession actions
If a vulture fund is trying to repossess your property, we can provide you with expert legal advice and representation to help you defend the action. We have unique experience in representing clients in repossession actions as we are one of the only law firms in Scotland who regularly act for both lenders and borrowers. This provides us with an unparalleled knowledge base and matchless perspective that helps our clients gain the edge.
Charge for payment
Vulture funds will often serve a charge for payments against you as a precursor to raising sequestration proceedings. We can help client suspend or reduced (void) these charges pre-emptively stopping them from getting to the stage in which they can raise sequestration proceedings.
Negotiation is an important part of helping clients achieve the best result possible when dealing with vulture funds. It is important to negotiate sensibly and realistically having regard to the security held, the totality of asset cover, and the ability to refinance. At MBM we use a combination of legal arguments, sector relationships and commercial acuity to assist our client is reaching a settlement. In addition, we can provide you with tailored restructuring advice to assist you in refinancing away from the vulture fund.
Get in Contact
For help and advice on dealing with a vulture funds such as Promontoria, Cerberus, Clipper, and their agents Engage Commercial contact us today.