pfffill
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Post by pfffill on Jan 29, 2021 13:44:14 GMT
Corking update just posted - for the bank balances of sundry administrators, that is:
"The borrower company is now in Administration. The property has been sold and the Administrators of FundingSecure (FS Administrators) are holding the sale funds, as there was a challenge regarding the receivership appointment from the Administrator of the borrower company. The FS Administrators have appointed a new Administrator of the borrower company and this Administrator will now investigate the position."
Their Christmas bonuses have come round again, and it's only January.
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pfffill
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Post by pfffill on Apr 30, 2021 16:02:29 GMT
Update:
"The Borrower company is now in compulsory liquidation. The OR is acting as Liquidator and the Administrators are in discussions with Insolvency Practitioners with regard to appointment over the company. An update will be provided once available."
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pfffill
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Post by pfffill on Jul 30, 2021 14:34:35 GMT
Further update today:
"The Administrators are liaising with the Official Receiver who is currently acting as liquidator for the borrower company."
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pfffill
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Post by pfffill on Oct 29, 2021 14:35:25 GMT
Update:
"The Joint Administrators' solicitors are dealing with the Official Receiver in order to obtain comfort to release the funds held."
That's $565k or about 59% RoC, no interest.
Who knows, we may see some cash if the Quisclose saga is ever resolved.
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pfffill
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Post by pfffill on Nov 1, 2021 3:09:08 GMT
FS estimated value of project at time loans were made: £2.035m, LTV: 46.4%
Sold for £0.6m, less than 30% of estimated value.
Nett returned to first charge lenders: £0.565m (presently held by FS in administration pending resolution of Quistclose).
First charge outstanding loan: £0.945m (holders of supplemental loans, ranked after first charge, totalling £0.3795m, will be wiped out).
Nett returned to first charge lenders: 59.79%
Another winner from F*cking Scumbags!
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Post by overthehill on Nov 1, 2021 10:06:11 GMT
FS estimated value of land at time loans were made: £2.035m, LTV: 46.4% Sold for £0.6m, less than 30% of estimated value. Nett returned to first charge lenders: £0.565m (presently held by FS in administration pending resolution of Quistclose). First charge outstanding loan: £0.945m (holders of supplemental loans, ranked after first charge, totalling £0.3795m, will be wiped out). Nett returned to first charge lenders: 59.79% Another winner from F*cking Scumbags!
Out of nowhere the GDV jumped from about 1.3M to 2M. If the three houses sold for 600k I think we surmise the houses were nowhere near completed as stated in the notes, appears to be straight lies and deception from FS and/or the borrower unless anyone else can offer a better explanation. Maybe a sewerage plant has been built behind them.
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easynow
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Popcorn anyone?
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Post by easynow on Nov 1, 2021 11:29:05 GMT
I think the buyer has got off very lightly here, plot one was all but complete in December 2018, plot 2 and 3 were both built and watertight, at the time, a price tag in excess of 500k each wasn't out of the way (when complete), that will have increased considerably over the past 3 years.
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sqh
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Before P2P, savers put a guinea in a piggy bank, now they smash the banks to become guinea pigs.
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Post by sqh on Nov 1, 2021 11:57:22 GMT
FS estimated value of project at time loans were made: £2.035m, LTV: 46.4% Sold for £0.6m, less than 30% of estimated value. Nett returned to first charge lenders: £0.565m (presently held by FS in administration pending resolution of Quistclose). First charge outstanding loan: £0.945m (holders of supplemental loans, ranked after first charge, totalling £0.3795m, will be wiped out). Nett returned to first charge lenders: 59.79% Another winner from F*cking Scumbags! These properties should have sold for substantially more, but my understanding is that there was/is a large amount owed for development rights (CIL or S106). This should have been identified by the solicitors acting for FS and ultimately lenders. If anyone knows the name of the acting solicitors please PM me.
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pfffill
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Post by pfffill on Nov 1, 2021 12:16:04 GMT
"These properties should have sold for substantially more, but my understanding is that there was/is a large amount owed for development rights (CIL or S106). This should have been identified by the solicitors acting for FS and ultimately lenders. If anyone knows the name of the acting solicitors please PM me."
If correct, this most certainly should have been identified, since it would have affected the risk involved and hence the attractiveness of the loan. Is there any way online of digging out the chronology of the loans and the names involved? Is it within CG&Co's remit to pursue a claim at this late stage for apparently negligent legal advice?
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easynow
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Popcorn anyone?
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Post by easynow on Nov 1, 2021 12:37:44 GMT
If correct, this most certainly should have been identified, since it would have affected the risk involved and hence the attractiveness of the loan. Is there any way online of digging out the chronology of the loans and the names involved? Is it within CG&Co's remit to pursue a claim at this late stage for apparently negligent legal advice? S106 payments due were circa £88k at last glance, which seems high IMO, but according to sales patter when this was marketed, there had been some surcharges imposed. **EDIT, there is a link to the sales information in DD central
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Post by overthehill on Oct 12, 2023 13:57:50 GMT
1st charge loans eventually paid back 47% of original capital after 5 years of investment and 18 months of update radio silence. Costs breakdown but zero explanation is online, best you can expect from C&G
Supplementary loans received nothing.
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iRobot
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Post by iRobot on Oct 12, 2023 15:29:48 GMT
1st charge loans eventually paid back 47% of original capital after 5 years of investment and 18 months of update radio silence. Costs breakdown but zero explanation is online, best you can expect from C&G Supplementary loans received nothing. Costs are all over the place on this one. The FS / CG update from Jul-20 stated: " The sale of the property completed on 30 June 2020 at a price of £600,000. The net proceeds following deduction of the associated sale costs have been received, in the sum of £565,048.94." and yet the borrowing company's Administrators report from Mar-21 advised: " As reported previously, the Receiver accepted an offer of £600,000 and following Receivers fees and expenses totaling £57,227 the balance of £542,772 was paid to the secured creditor ". Today's breakdown suggests "Receivers costs and expenses" of £54,710.66 ... so nothing ties up. Of that £600k some £75.5k of (seemingly) 3rd party costs reduced it by c. 14% and CG's own costs reduced the balance by a further c. 16% consisting of: CG's base fee of 3% (2.5% + VAT) an 'Expense Contribution' of 5% and a interestingly named 'Indemnity Sum' being 7.5% of the amount realised. In £££ the contribution to CG's sterling efforts totals >£81k £600k reduced to £443k in a (very slow) blink of an eye.
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adrian77
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Post by adrian77 on Oct 12, 2023 15:45:39 GMT
Here's what I wrote in 2020
As mentioned Mr James L friend of our favourite art dealer is involved here - owned the land recovered and sold to the builders? Also common thread between other FS problematic loans and a finance broker/director
Just what the hell has been going on here - something is very very wrong here....
Luckliy I sold my investment in this one - sorry for the current investors who have clearly been shafted and if FS were doing their job properly this should never have happened
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ozboy
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Mine's a Large One! (Snigger, snigger .......)
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Post by ozboy on Oct 12, 2023 16:21:26 GMT
"how the hell can FS lose so much money with "secure" lending?"
Very easily.
If you're an idiot, a criminal, or both.
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