Lease restructuring & workout

When an equipment lease stops working, the equipment still can.

We step into equipment leases that have gone wrong for either side: payments in arrears, a lessor that wants out of a portfolio, hardware sitting in a data center nobody is paying for. The aim is a workable outcome for the people involved and a second life for the equipment.

We act within the existing contracts and the law of the place where the equipment sits. Every engagement starts with the documents and a conversation with all parties; nothing is removed from a site without the right to do so.

Situations

Four situations we are asked into

Each one has a lessor, a lessee and a third party somewhere in the chain. We usually end up working with all three.

For lessors & lenders

A lessee has stopped paying

The schedule is in arrears, the equipment is still in use, and enforcing the contract would cost more than the hardware is worth.

What we doIndependent valuation of the equipment in place; a restructured schedule the lessee can actually meet; or we buy the lease from you at a price that reflects today's residual, and carry the workout ourselves.
For lessors & lenders

Exiting a non-performing portfolio

A book of small IT leases, some performing, some not, that no longer fits the balance sheet or the team.

What we doPurchase of the whole portfolio or the non-performing part of it. We price per schedule, take assignment of the contracts, and service them with our own asset managers.
For lessees & operators

Behind on a lease you still need

Revenue slipped, the lessor is losing patience, and the servers are running your customers.

What we doRefinance the remaining obligation into a new schedule with us, with the arrears settled to the original lessor. Longer term, lower payment, equipment stays where it is.
For any party

Equipment held by a third party

Hardware is in a colocation facility, with a service provider or an integrator, and that party has unpaid invoices of its own, or has simply stopped responding.

What we doEstablish who holds title and what is actually owed. Negotiate release, settle the legitimate charges, de-install and relocate the equipment. Where it makes sense, we buy it in place and resolve the rest ourselves.
How a workout runs

Documents first, trucks last

Most engagements never reach the last step. A realistic schedule, signed by both sides, is the usual outcome.

01

Review

Lease, schedules, security, invoices, and where the equipment physically is. We confirm title and the rights of every party in the chain.

02

Valuation

What the equipment is worth today, in place and on the secondary market. This sets the ceiling for everything that follows.

03

Proposal

A restructured schedule, a buy-out of the lease, or a purchase of the equipment. Put to all parties in writing, with the numbers.

04

Execution

Agreements signed, arrears settled, and if equipment needs to move, our own crews de-install, wipe and relocate it with a documented chain of custody.

How we work

Rules we hold ourselves to

  1. i
    Contract and law first.We act on the rights in the documents and in the jurisdiction where the equipment sits, with local counsel where needed. No self-help.
  2. ii
    Every party is heard.Lessee, lessor, the data center and the service provider all receive the same proposal in writing.
  3. iii
    Running equipment stays running.Where servers carry live customers, a migration plan comes before any relocation.
  4. iv
    Discretion.We do not publicise engagements, counterparties or outcomes.
  5. v
    Our interest is the equipment.Because we lease, rent and remarket hardware ourselves, we can pay for its next life rather than its scrap value, and that is usually what makes the numbers work for everyone.
Confidential first call

Describe the situation in a few lines. We reply within two business days with what we would need to see.

Talk to us