Multinational food processing company requiring 'off balance-sheet' funding.

  • Introduced by one of our local bank relationships.
  • Belgian parent required that UK subsidiary transacted any asset finance off balance sheet.
  • New company set up by the directors of the food processing company to acquire many thousands of vegetable crates and rent these (off balance sheet) to the senior company.
  • Issues with new-start status, lack of security in the crates, and lack of funding available in the new company.
  • Mitigated by securing a signed contract over 15 years (no break clauses) between the new and existing companies.
  • Cross company guarantee and directors' guarantees also secured due to 'commercial interest' which exists between the two businesses through the operating contract.
  • A consortium of a dozen lenders used to accommodate three staggered funding tranches to the value of £1.2 million net VAT.