Westfort has successfully advised on the restructure and refinance of a non-performing loan secured against a UK leisure asset undergoing a major transformation.

The borrower engaged Westfort after breaching a projected ICR covenant. Revenue had decreased during an intensive refurbishment programme, but the sponsor continued to service interest from equity; at times injecting £2m per month to service interest and cover capex costs. Despite a conservative leverage of c.50%, the lender had lost patience and was gearing up for enforcement.

Westfort stepped in to stabilise the situation. We negotiated a loan extension; avoiding default interest and affording the borrower time to complete the works and refinance.

To manage lender expectations and ease tensions, Westfort took over the borrower’s communication with the lender, providing regular updates during the process. This alleviated the pressure on the borrower, allowing them to focus on their business plan.

The result was a successful refinance with a UK debt fund. The new facility included a refinance tranche and a capex tranche to fund the remaining works. Once works are complete, the asset is expected to be worth £25m+; a strong outcome in a challenging environment.

“This transaction is a clear example of Westfort’s ability to bring calm, structure, and strategic direction to a complex situation,” said Deepak Drubhra, Co-Founder of Westfort Advisors. “By leveraging our restructuring expertise and maintaining close alignment with all stakeholders, we managed a controlled process that delivered a successful refinance. Both the sponsor and the lender are extremely pleased with the outcome.”

This transaction reflects Westfort’s ability to deliver certainty and value in complex capital situations – particularly where timing, alignment, and lender relationships are critical.