Transaction & Structuring Support

Project Verner

Our client was approached by a related entity for a loan in the form of a credit facility. The related entity was facing cash flow deficits due to unforeseen events. We were engaged to undertake pre-lending due diligence.

Our client was approached by a related entity for a loan in the form of a credit facility. The related entity was facing cash flow deficits due to unforeseen events. We were engaged to undertake pre-lending due diligence.

Our path of work included:

  • Analysing the borrower’s financial position and recent financial performance;
  • Meeting with the borrower to understand the requirement of the loan;
  • Identifying the key challenges and risks the borrower will face that may impact on their ability to repay the loan;
  • Estimating the borrower’s future financial performance;
  • Identifying appropriate assets to secure the loan against.

Our review outlined the potential risks with advancing further funds and recommended the client not lend funds to the related party.