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Lenders Suffer a significant haircut!!

By July 12, 2022Case Studies1 min read
Lenders Suffer a Significant Haircut

How did we efficiently & effectively overcome this problem?

CURRENT SCENARIO

Based on our information request list, we got some information. We carried out inspections as per the provided asset register, to verify the assets & inventories.

WHAT WE DISCOVERED

A substantial chunk of high-value Plant & Machinery was not offered for verification.

CHALLENGES

  • Assets were intentionally not offered for inspection by the company to reduce the value
  • Lenders were not informed if these assets were actually sold or available with the company

HOW WE TACKLED THE SITUATION

  • We want ahead and valued these missing assets since they were appearing on the company’s book
  • Not valuing these assets which were created from the bank’s funds may have resulted in a loss for the bank.

CONCLUSION

The lenders got an offer considering the increased valuation of these assets due to which the recovery of their loan got better.

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