eeyore
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Post by eeyore on Apr 30, 2018 14:02:28 GMT
The main this is that we have first charge on the security, which satisfies me Agreed, but then it all depends on the confidence we have in the reliability of the valuation.......
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Post by Deleted on Apr 30, 2018 15:16:59 GMT
It was always a second loan.....
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Post by tackerbear on May 1, 2018 0:36:42 GMT
It was always a second loan..... If the first lender (MT) has consented to a security interest in favour of a second lender and the terms of the second security conflict with the terms of the first security (ie MT’s) then it is relatively simple to argue that MT can not later object to second lender insisting on compliance with the terms on conflict. Now of course if the first lender hasn’t given the request for consent and the second mortgage/lender’s security documentation the close attention that the matter required then it may well become a point of significant contention/conflict when for example the second mortgagee/lender seeks to appoint a Receiver or Provisional Liquidator as part of the process to recover their loan or to take over control of the property pending its sale. All of this requires close attention to the accuracy of the valuation of the property and with the renovation of the property seeming to be unfinished and the property yet to be fully let, two assumptions fundamental to the valuation upon which the LTV calculation is referenced, the recovery of the loan via a sale of the property in those circumstances, may be less straight forward or certain than one might imagine. I guess time will tell how well everyone involved has done their jobs documenting this loan.
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eeyore
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Post by eeyore on May 9, 2018 11:56:56 GMT
This article in The Guardian today paints a very depressing view of the prospects for retail in Newcastle-under-Lyme - it's about the last-ditch attempts to reinvigorate a failing shopping centre, York Place, in central Newcastle. It includes these statements: "Its anchor tenant .... isn’t an H&M or a Wilko, but a charity: the YMCA. Rather than a traditional charity shop, it’s selling jewellery and other work hand-made by local artists, and runs arts and crafts workshops for residents of all ages."
"Where shopping centres are normally stuffed full of chains, York Place is now a hub for local independents. Where landlords usually demand maximum rent, Riddell [the York Place manager] has cajoled his London-based client into accepting two non-profits in return for reduced business rates."
I wonder what the prospects are for the Moneything borrower when one of the town's existing shopping centres has already adopted the same business model. www.theguardian.com/commentisfree/2018/may/09/shopping-centre-currency-hope-newcastle-under-lyme
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hazellend
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Post by hazellend on May 9, 2018 13:29:13 GMT
Don’t know. I guess it’s a “build it and they will come scenario”.
Satellite areas can’t compete with the big glitzy shopping malls these days so coffee shops/independants seems the right way to go
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stokeloans
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Post by stokeloans on May 9, 2018 17:08:24 GMT
This article in The Guardian today paints a very depressing view of the prospects for retail in Newcastle-under-Lyme - it's about the last-ditch attempts to reinvigorate a failing shopping centre, York Place, in central Newcastle. It includes these statements: "Its anchor tenant .... isn’t an H&M or a Wilko, but a charity: the YMCA. Rather than a traditional charity shop, it’s selling jewellery and other work hand-made by local artists, and runs arts and crafts workshops for residents of all ages."
"Where shopping centres are normally stuffed full of chains, York Place is now a hub for local independents. Where landlords usually demand maximum rent, Riddell [the York Place manager] has cajoled his London-based client into accepting two non-profits in return for reduced business rates."
I wonder what the prospects are for the Moneything borrower when one of the town's existing shopping centres has already adopted the same business model. www.theguardian.com/commentisfree/2018/may/09/shopping-centre-currency-hope-newcastle-under-lymeYork Place isn't a shopping centre in the usual sense. If you look at that picture in The Guardian you can see though it to the street behind.It is pretty much 1 short thoroughfare between 2 streets. The article says 35 units,I find that hard to believe. I think the biggest tenant it ever had was Poundstretcher or something similar. It is true the other shopping centre in the town, The Roebuck centre recently lost 2 of it's 3 major tenants,Argos ( now inside Sainsburys) and Next,just leaving Iceland and a handful of independents.Again this is a very small mall. Newcastle under lyme is struggling,as are most towns that rely on retail these days.On the positive side another development is in the offing,something in the order of 12 retail units and student accomodation,yes more students,can't get enough of them around here. There are busier retail areas a couple of hundred yards away Oh and the article is wrong,there's never been a Primark in Newcastle
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r00lish67
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Post by r00lish67 on May 10, 2018 13:37:05 GMT
MoneyThing I've just seen your latest update on this, but what news on the re-financing mentioned on the 11th April? What was the value assigned? 11/04: "We understand the valuer is going out in the next week and as such we will hopefully be in a position to report back on the value and process in respect of refinance on the next update"
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Post by mrclondon on May 12, 2018 11:58:20 GMT
A third finance provider (FP) has now registered a charge against the borrowing company at CH. FP1 (MT): 1st charge on property & 1st debenture (incl all property floating charge, and negative pledge) Oct 17 FP2: 2nd charge on property Feb 18 FP3: 2nd debenture (incl all property floating charge) May 18 MoneyThing / SophieThing can you confirm as you did with the charge to FP2, that this new debenture to FP3 received your consent given you have a negative pledge clause in your own debenture.
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gwenynwyr
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Post by gwenynwyr on May 12, 2018 16:04:56 GMT
What is a negative pledge clause please
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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 May 12, 2018 16:11:56 GMT
What is a negative pledge clause please It means the borrower cant grant any additional charges over the security held by the existing charge holder without their consent
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Post by tackerbear on May 12, 2018 20:13:08 GMT
It would seem these security interests are being created at quite a pace. Perhaps only speculation but the second charge with respect to a loan to ease a cash flow problem when interest on the MT loans (2) came due in early April was followed a few days after the much delayed interest payment was received (27th April) by yet another security arrangement (created onb1st May) for presumably another loan (the 4th) obtained by this borrower and secured against the same property(s) over which MT has security. Presumably MT gave permission for this 4th loan too but you have to wonder upon what basis and with what updated financial information from the Borrower and Guarantor? Clearly there must be questions about what the Borrower’s loan(s) to value ratio on this yet to be completed building is looking like....pretty stretched at an educated guess. That same educated guess would suggest borrowings in the range of £2.6-2.7m are now secured against the same property(s) so the mooted “refinancing” mentioned in the update on 11th April is pretty surely going to have to take into ALL these borrowings if MT is to be refinanced.
You would have to figure alarm bells must be going off by now inside MT as to the accurracy and completeness of the financial disclosures by the Borrower when the MT loan was first requested. Same for when the second MT loan was granted in December 2017. Very little of what we are hearing about this Borrower or the Guarantor seems to add up...
And of course the recent MT update on Thursday reporting on building site information about the slow progress towards towards finishing off the renovation of the property again omitted mention of this new (4th) loan arrangement OR the granting of approval to that 4th loan security arrangements. One would have thought in the circumstances a more fulsome disclosure would have been forthcoming. Seems MT didn’t think it necessary for investors to know of its involvement in approving (or not) the new security taken over the property(s). For such a big loan exposure that looks very peculiar...
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Nomad
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Post by Nomad on May 13, 2018 8:15:26 GMT
You would have to figure alarm bells must be going off by now inside MT as to the accuracy and completeness of the financial disclosures by the Borrower when the MT loan was first requested. Same for when the second MT loan was granted in December 2017. Very little of what we are hearing about this Borrower or the Guarantor seems to add up... And of course the recent MT update on Thursday reporting on building site information about the slow progress towards towards finishing off the renovation of the property again omitted mention of this new (4th) loan arrangement OR the granting of approval to that 4th loan security arrangements. As someone who used to be in the business activity involved here, I didn't like this loan when it first appeared, and it looks even less appealing now.
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star dust
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Post by star dust on May 13, 2018 8:17:15 GMT
Update on-site loan marked as non- performing again due to the slow transfer of offshore funds which mean the interest payment is late/ not yet arrived.
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archie
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Post by archie on May 13, 2018 9:03:59 GMT
I don't suppose they thought to transfer the payment for next month too.
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keystone
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Post by keystone on May 13, 2018 11:14:43 GMT
I don't suppose they thought to transfer the payment for next month too. Probably not, as the borrower may not have the 5th loan in place yet!
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