Not just the season for turkey; the vultures are still circling!
Published 16 December 2019. By David McAlinden.
Loan sales and transfers are still happening and with the prospect of a further transfer or sale of some loans from Promontoria (Pine) DAC to Everyday Finance DAC looming, the controversy surrounding the sale of loans from the banks to third parties, known as “vulture funds”, continues, notwithstanding the festive season.
For those not familiar with the term, a vulture fund is a company that buys up distressed investments or underperforming debt, usually from banks. Common names in cases which MKB Law are involved in include Promontoria, Everyday Finance DAC, Clipper, Pepper and Cerberus. Often the vulture funds use agents such as Link or Engage to attempt recovery. The debts are often purchased in large debt books or portfolios and may include a combination of unsecured, secured or debts based on personal guarantees which have been assigned to the vulture funds. Often enforcement of the debt takes place with the threat of bankruptcy proceedings by the issue of a statutory demand or if there is security it may be by repossession proceedings, or a combination of both.
At MKB Law we advise numerous clients on all aspects of dealing with vulture funds and we examine each case carefully on its own merits before providing expert legal advice and representation, both prior to any legal action and after. No one case is the same and our approach is tailored to suit the individual client’s needs.
This article is for general guidance only and should not be regarded as a substitute for professional legal advice.