hazellend
Member of DD Central
Posts: 2,363
Likes: 2,180
|
Post by hazellend on Apr 23, 2018 14:49:27 GMT
I smell another bankruptcy coming along, it's only our money. Secured against a property of course. I don’t see this one defaulting personally. Why would it?
|
|
|
Post by mrclondon on Apr 23, 2018 15:16:26 GMT
I smell another bankruptcy coming along, it's only our money. Secured against a property of course. I don’t see this one defaulting personally. Why would it? I think there are a number of scenarios which could see it defaulting, all broadly related to cashflow needed to service the debt. It hinges on how much realisable wealth the principals have to to be able to support this through the next couple of years. I understand the second charge loan behind MT will incur severe penalty interest if not redemmed by August. That would appear to be the first choke point assuming the MT loan can be serviced without increasing the current arrears until then.
|
|
jlend
Member of DD Central
Posts: 1,832
Likes: 1,461
|
Post by jlend on Apr 23, 2018 15:16:34 GMT
I smell another bankruptcy coming along, it's only our money. Secured against a property of course. I don’t see this one defaulting personally. Why would it? I guess it depends on whether they can service the interest on the MT loan and this new loan, and pay back the capital on this new loan by the end of august. Not guaranteed given they cannot currently service the MT loan, although we hear money is on the way. The site is due to open in May but there is no sign of a date on their website etc yet. Even if it opens in May, servicing both loans looks like it would be tight. Of course there may be a good explanation about this from MT. And the borrower could transfer more funds. Plus the last update said they were looking to refinance so I would assume it will work out ok in the end
|
|
|
Post by giraffee on Apr 23, 2018 15:29:09 GMT
and today is the 23/04/2018 where the interest should be paid out right?
|
|
hazellend
Member of DD Central
Posts: 2,363
Likes: 2,180
|
Post by hazellend on Apr 23, 2018 15:53:27 GMT
Using reverse reasoning I see the second charge loan as reassuring.
The second charge holder must be confident the borrower has funds to service the first charge otherwise it would be onto a guaranteed loss
|
|
|
Post by giraffee on Apr 23, 2018 16:04:24 GMT
Just curious, through what means can we actually find out about the second charge loan ?
|
|
jlend
Member of DD Central
Posts: 1,832
Likes: 1,461
|
Post by jlend on Apr 23, 2018 16:56:00 GMT
Just curious, through what means can we actually find out about the second charge loan ? You will find the companies house number of the borrower on the MT website. You can then look up the borrower on the companies house website and see any charges registered against the borrower company.
|
|
|
Post by mrclondon on Apr 23, 2018 17:02:21 GMT
Just curious, through what means can we actually find out about the second charge loan ? Pull up the MTBA822 loan on MT, about 2/3 of the way down the page under the heading "Supplementary comments from the borrower:" is listed the company number of the borrowing company. Pull up the companies house search page , and copy/paste in the company number from the MT loan page. Click on the name of the company that the search returns, then click on the "Filing History' tab. In reverse order you'll see listed the incorporation of the company in July 2017, two charges (property plus debenture) from MT in Oct/Nov 2017, and the new second charge loan of Feb/Mar 2018. Download the pdf for this new loan - the amount of the loan, and the interest rates (normal and default) appear on page 7 of the pdf. There appears to be a typo in the description of the default interest rate, but its a punative rate irrespective (and the normal rate is not great either) Welcome to the world of p2p Due Diligence (cross posted with jlend )
|
|
78
Posts: 76
Likes: 83
|
Post by 78 on Apr 24, 2018 5:33:58 GMT
Did the borrower breach the negative pledge or did MT consent to the additional charge? Does the borrower have the market licence that is required before they can open? Is it correct that the borrower has only prelet 103 of the 400 stalls? Presumably the tenants have already paid a months rent in advance so the borrower will not receive any further income from these tenants until a month after the center has opening? Has the borrower retained all these tenants as some tenants signed up in october last year in anticipation of a christmas 2017 opening may have asked for their money back?
|
|
|
Post by tackerbear on Apr 24, 2018 7:45:51 GMT
Presumably MT will put out an update on the interest payment today and if it's not been paid, MT will move to enforce the security over the property, call in the directors guarantee and begin the loan recovery process? Thats going to create some tension with the second mortgagee because its loan security seems to restrict the further leasing of the property after the security was put in place back in late February or further advances being made under the MT loans either. The second mortgage security was created was signed in Late February so presumably MT consented to the creation of that second mortgage sometime before the end of February? Curious how these things which seem pretty fundamental to the loan investment process were not mentioned in the updates that followed in early March or the more recent one earlier this month. Must have slipped the borrower or MT's minds??
Toto seemed to know a fair bit about this loan so maybe he/she can help enlighten us?
|
|
hendragon
Member of DD Central
Posts: 631
Likes: 619
|
Post by hendragon on Apr 24, 2018 7:48:07 GMT
I rather think that MT need to issue an update for this one as soon as possible, be it for good or for ill. There have been too many instances on other platforms of promise to pay dates being ignored or extended. The dates for the borrowers money to arrive from overseas have now passed and it should be possible to know if the borrower is, or is not, in a position to pay the interest. Would the Things please answer these questions as quickly as possible? (crossed with previous post)
|
|
jsmill
Member of DD Central
Posts: 100
Likes: 114
|
Post by jsmill on Apr 24, 2018 10:49:23 GMT
Agreed with the comments on this thread, an update is overdue. When you consider the high level of interest payable by the borrower, even by P2P standards (on both the Moneything facility and the secondary charge) even short delays to opening are going to be hard to service. Add to that the failure to meet the revised payment terms and it is definitely concerning. Given the persistent delays to a certain storage facility loan and the cash I have tied up with B******ton and the south coast student digs glad I took the decision to halt new MT investments. Interesting times ahead.
|
|
|
Post by giraffee on Apr 24, 2018 13:10:05 GMT
Update added: TLDR: International Transfers take longer than expected, Wednesday/Thursday instead.
May the Thing reply on the second charge, on whether MT consented to it? I believe all the lenders should be informed on this as well.
|
|
mary
Member of DD Central
Posts: 698
Likes: 711
|
Post by mary on Apr 24, 2018 13:26:48 GMT
Update added: TLDR: International Transfers take longer than expected, Wednesday/Thursday instead. My international transfers never take more than 48 hours (more usually just 24), are they sending it by pigeon mail? I am now avoiding any loans (on any platform) with a foreign entity involved.
|
|
|
Post by giraffee on Apr 24, 2018 13:35:29 GMT
Telegraphic Transfers take 2-4 business day to be processed.
|
|