We were asked to look at providing funding for new industrial CNC machines to a business in the midst of being sold to an external corporate. Pending completion of the sale of the business  the existing shareholders of the trading company had placed an embargo on the company taking on any more balance-sheet debt; unforeseen delays in completing the acquisition caused disruption to the company’s day to day operations such that orders were potentially being unfulfilled due to the company’s inability to fund & obtain the use of the commercially critical machines.

We took a creative approach & lent to the corporate acquirer who then agreed with the Directors (& Shareholders) of the trading company a separate Operating Lease, thereby giving the trading company the use of the machines whilst satisfying the existing trading company’s shareholders’ desire to keep further debt off the balance sheet; at the same time it was agreed that that upon completion of the acquisition the underlying HP Agreement with the corporate acquirer would be novated to the trading company, with all parties needs met.