annie
Posts: 45
Likes: 16
|
Post by annie on Feb 13, 2017 16:40:43 GMT
H--D--H--S-- and others. The net worth is negative and mainly consists of current liabilities so asked for reassurance from company and LC, which was quickly received. Thanks for the reassurance. Will keep this in mind for other loans.
Reply from LC was:
There is an undertaking in the loan contract that they do not rank any directors loans ahead of repayment of the LendingCrowd loan. We also explain that when there are significant directors loans against a deficit that repayment is not ahead of us and suggest that they look to capitalise part of the loans to improve their balance sheet.
In each of the recent cases there has been considerable directors loans which would cover the deficit if capitalised.
Regards
-------
LendingCrowd
Senior Credit Risk Specialist
|
|
TheDriver
Member of DD Central
Slightly bonkers
Posts: 493
Likes: 190
|
Post by TheDriver on Feb 13, 2017 19:32:20 GMT
Unfortunately, particularly due to LC's track record of (not) enforcing conditions, whatever that means doesn't provide much reassurance!
Anyway, HDHS's answer to my question that the loss-making divisions were closed-out before March 2015 means that the company still isn't making any profit, so how will they make the repayments?
|
|
muh3
Posts: 52
Likes: 13
|
Post by muh3 on Feb 15, 2017 12:48:51 GMT
Unfortunately, particularly due to LC's track record of (not) enforcing conditions, whatever that means doesn't provide much reassurance!
Anyway, HDHS's answer to my question that the loss-making divisions were closed-out before March 2015 means that the company still isn't making any profit, so how will they make the repayments? They did actually turn a profit of 4443€, however the company looks insolvent with the current director loans. It will take about 50 year (without growth) to get the company into a positive net worth. A company like this should not get a B+ rating in my opinion.
|
|