Survival tips for ‘bank trouble’
Financial lawyer ESTELLE CLARKE offers advice on what to do when a bank alleges a breach of lending conditions
Some lenders are responding to their own crises by requesting that their financing arrangements, such as are in place with care sector borrowers, are re-priced (and/or the terms of such arrangements are changed).
Increased pricing (and changes in terms such as repayment) can put an unsustainable strain on borrowers. A bank may contact its borrower asserting a breach of the documents that the lender and borrower signed when the loan was taken out. Translating such ‘bank speak’ bluntly, the borrower is told by the bank that there has been a breach a