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Post by bikeman on Sept 29, 2017 18:12:06 GMT
I have suspended loans in the GEIA. The borrow hasn't missed any payments but the loan is suspended. The notes explain that the business case isn't panning out as expected and the loan was suspended from almost the very first month which seems a little quick.
Despite that the borrower has met all their payments so why suspend the loan?
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Post by lynnanthony on Sept 29, 2017 19:20:29 GMT
What is the loan number?
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ilmoro
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'Wondering which of the bu***rs to blame, and watching for pigs on the wing.' - Pink Floyd
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Post by ilmoro on Sept 30, 2017 11:30:46 GMT
#437 I assume as its the only turbine loan suspended.
It is suspended due to material uncertainty as to the actual project being undertaken and valuation (due to unknown income stream with loss of guarentied FIT), and therefore LTV, so it is not possible for AC to present a firm propostion to new investors to enable the loan to be traded. Its also borderline on its GEIA eligibility with the suggested new figures so AC would need to get that firmed up so they know whwether the GEIA is going to sell up.
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mikes1531
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Post by mikes1531 on Sept 30, 2017 21:40:58 GMT
Despite that the borrower has met all their payments so why suspend the loan? Is the borrower making the payments? Or are they being paid by AC out of investors' funds retained at drawdown?
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Post by bikeman on Oct 1, 2017 20:16:25 GMT
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Post by bikeman on Oct 1, 2017 20:17:23 GMT
Despite that the borrower has met all their payments so why suspend the loan? Is the borrower making the payments? Or are they being paid by AC out of investors' funds retained at drawdown? I don't think AC provide me with that level of information.
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ilmoro
Member of DD Central
'Wondering which of the bu***rs to blame, and watching for pigs on the wing.' - Pink Floyd
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Post by ilmoro on Oct 1, 2017 20:37:35 GMT
Is the borrower making the payments? Or are they being paid by AC out of investors' funds retained at drawdown? I don't think AC provide me with that level of information. They usually do in the credit report. In this case there is no reference to funds being retained by AC to cover interest payments or a buffer so I think the borrower is paying the interest. Certianly they are for one of the other loans as the CR mentions DD collection. Borrower seems to have a fair amount of resources as they ponied up 125k in July.
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Post by bikeman on Oct 2, 2017 13:28:26 GMT
I don't think AC provide me with that level of information. They usually do in the credit report. In this case there is no reference to funds being retained by AC to cover interest payments or a buffer so I think the borrower is paying the interest. Certianly they are for one of the other loans as the CR mentions DD collection. Borrower seems to have a fair amount of resources as they ponied up 125k in July. The notes do say something about that £125k being held back from the original loan by AC so its not come from the borrower. I think AC could be explaining more like clarifying who is making the payments and what is the purpose of suspending the loan if there are no arrears. It looks like they perhaps didn't ask the right questions at the outset and got nervous when they found out something they didn't like because they very quickly suspended the loan and locked us lenders in.
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ilmoro
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'Wondering which of the bu***rs to blame, and watching for pigs on the wing.' - Pink Floyd
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Post by ilmoro on Oct 2, 2017 13:48:27 GMT
They usually do in the credit report. In this case there is no reference to funds being retained by AC to cover interest payments or a buffer so I think the borrower is paying the interest. Certianly they are for one of the other loans as the CR mentions DD collection. Borrower seems to have a fair amount of resources as they ponied up 125k in July. The notes do say something about that £125k being held back from the original loan by AC so its not come from the borrower. I think AC could be explaining more like clarifying who is making the payments and what is the purpose of suspending the loan if there are no arrears. It looks like they perhaps didn't ask the right questions at the outset and got nervous when they found out something they didn't like because they very quickly suspended the loan and locked us lenders in. Its clear why the loan has been suspended. Its been suspended becuase the turbine wont be commisioned in time to secure the guatenteed FIT payment and therefore the valuation, which was based on a set income stream, isnt correct. Until the turbine is connected the level of the FIT is unclear so the valuation & thus LTV is uncertain so it cant be tradeable because there is such uncertainty. The reason for the delay was the electricity provider changing the specs required for connection and the equipment being unavailable in the required timescale ... seems this was an unexpected issue and not predictable. You are right that the 125k was undrawn funds but the info also says that the borrower would need to cover the shortfall so presumably must have the funds. Uncertainty over this would be another reason for the loan to be suspended as it introduces uncertainty over the project's completion. AC normally state in the CR if funds have been retained from drawdowns to cover interest (see development loans) so I see no reason why they wouldnt have done so in this case, so Im pretty sure the borrower is covering them. However, best thing would be to ask on the Q&A or enquiries.
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