We believe there is a better alternative approach to the traditional appointment of a receiver that requires an active approach aligned to the specific objectives of the debt holder.
Resolution Manager came together as a group with diverse but complimentary skills recognising that the Australian banks, subsequent to the GFC, were experiencing unprecedented levels of distressed loans, nonperforming loans or non core loans with particular emphasis on real estate investment and real estate development.
The Australian bank experience and response tailed global responses. In large part the Australian response was due to the strength of the Australian Bank balance sheets but also due to a clear preference for the banks to deal with problem real estate loans through traditional means. Notably the banks were relatively quick to deal with large non real estate syndicated positions.
We are now seeing (similar to offshore experience) banks being prepared to exit real estate loans as a consequence of some or all of the following:
- Continued weakness in real estate markets in particular for development assets
- Upcoming re finance requirements of borrowers
- Frustration with borrowers acting in conflict with the lenders objectives
- The need for banks to “move on” away from the focus on managing non core assets
- Success of the overseas banks in selling assets
- High costs of receivership
To find out more on how we can help, please contact us.
