rick24
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Post by rick24 on Nov 6, 2019 11:09:13 GMT
Strategy 1 "It is anticipated that on receipt of the £2m, the 40 plots are transferred to a new company incorporated specifically for the purpose developing these plots....the Lenders / Assetz Capital would still retain first ranking security over the Borrower’s residual assets" This seems to imply that the 40 plots would no longer be part of the security available to Assetz Capital lenders. Correct, but AC would be entitled to a share of the anticipated profit resulting from the development of those plots. I am sceptical that the 'entitlement' would mean anything. I'm afraid I suspected it was an attempt to put some of the security out of reach of the lenders.
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Post by Jack Barlow on Nov 6, 2019 11:20:27 GMT
Correct, but AC would be entitled to a share of the anticipated profit resulting from the development of those plots. I am sceptical that the 'entitlement' would mean anything. I'm afraid I suspected it was an attempt to put some of the security out of reach of the lenders. So you don't trust AC to set up a watertight agreement that makes release of the security to the new company conditional on receiving an appropriate share of the future profits?
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rick24
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Post by rick24 on Nov 6, 2019 11:27:05 GMT
I am sceptical that the 'entitlement' would mean anything. I'm afraid I suspected it was an attempt to put some of the security out of reach of the lenders. So you don't trust AC to set up a watertight agreement that makes release of the security to the new company conditional on receiving an appropriate share of the profits? My trust is rather low. Would it make any profits? I note also that the proposed return to lenders is c. 4.5m, against a headline borrowing figure of 5.97 m (so that's a 25% haircut) and total claimed value of residual security of 8.75m. If the security is worth 8.75m and lenders are owed 5.97m, why would they accept a theoretical 4.5m?
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Post by Jack Barlow on Nov 6, 2019 11:35:56 GMT
My trust is rather low. Would it make any profits? Possibly not, in which case one could argue that the proposed upfront payment would be (at least) fair return in exchange for releasing the 40 plots. I note also that the proposed return to lenders is c. 4.5m, against a headline borrowing figure of 5.97 m (so that's a 25% haircut) and total claimed value of residual security of 8.75m. If the security is worth 8.75m and lenders are owed 5.97m, why would they accept a theoretical 4.5m? You are only referencing the proposed return from Strategies 1 and 2 and ignoring Strategy 3 which "should" more than make up the outstanding capital and interest balance.
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pikestaff
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Post by pikestaff on Nov 6, 2019 11:36:38 GMT
I've voted A. Assetz clearly believe it's the right choice and they have given us a great deal of info in support of it. The detail adds credibility and the extension is short. Voting B at this stage would not be wise. rick24 The strategies if successful would get us £4.5m PLUS whatever is realised from the residual assets - which would give us full repayment with interest. [Edit: crossed with Jack.]
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jlend
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Post by jlend on Nov 6, 2019 12:14:10 GMT
I've voted A. Assetz clearly believe it's the right choice and they have given us a great deal of info in support of it. The detail adds credibility and the extension is short. Voting B at this stage would not be wise. rick24 The strategies if successful would get us £4.5m PLUS whatever is realised from the residual assets - which would give us full repayment with interest. [Edit: crossed with Jack.] I have voted A.
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Post by crabbyoldgit on Nov 6, 2019 12:19:43 GMT
rick did you say full return, plus interest, i want to believe , oh i so want to believe, however i cant .But for the first time will vote A and hope its not hope over reality, which of course it is. Going off to watch brexit tv its been going on less time than this mess.
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rick24
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Post by rick24 on Nov 6, 2019 12:19:49 GMT
I am rather inclined to agree with Steerpike's post on the private board.
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Post by roandy55 on Nov 6, 2019 13:04:20 GMT
Pure theatre. Didn't someone on here say this would be resolved by Christmas?
Just another thought, apparently under Assetz terms and conditions I have a duty of confidentiality to not share this communication with any other person or on any forum or other media. So what will happen if do? Will Assetz actually close my account?
They can keep the £39.
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cb25
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Post by cb25 on Nov 6, 2019 13:42:37 GMT
Assuming Option A wins (it always does), not sure how to interpret the fact that Lenders are willing to settle for 1/3 'immediately' (*) and the rest of the loan running for how long (forever?) rather than make demand for repayment on an 18-month loan that's late 2+ years.
(*) if Option A wins and the strategy is the same at the end of the extension and a company is really willing to put up £3m for plots that have had zero success over 3 and 1/2 years.
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Post by gramsky on Nov 6, 2019 16:35:57 GMT
I'm going for B, a bird in the hand is worth 2 in the bush.
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Post by queenvictoria on Nov 6, 2019 16:37:47 GMT
I've voted A. Assetz clearly believe it's the right choice and they have given us a great deal of info in support of it. The detail adds credibility and the extension is short. Voting B at this stage would not be wise. rick24 The strategies if successful would get us £4.5m PLUS whatever is realised from the residual assets - which would give us full repayment with interest. [Edit: crossed with Jack.] I have voted A. I have gone B this time. It has to end and I have now lost faith in the borrower and perhaps in the platform.
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jlend
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Post by jlend on Nov 6, 2019 16:58:36 GMT
I have gone B this time. It has to end and I have now lost faith in the borrower and perhaps in the platform. The involvement of C***** Homes swayed me to vote A. I think this shows some commitment to making this proposal work assuming the borrower can sort out the main refinance loan. I think it is worth seeing how this pans out rather than vote B as winter approaches which could turn out to be a nightmare for some of the security. At another time of year I might be swayed to vote B, but not now.
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Post by bracknellboy on Nov 6, 2019 16:59:30 GMT
I've gone A.
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SteveT
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Post by SteveT on Nov 6, 2019 19:05:18 GMT
A
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