SteveT
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Post by SteveT on Nov 16, 2017 13:13:58 GMT
That's likely to be because most was in the hands of MLIA lenders Do you think most people have a good handle on that? I keep asking AC to personalise the emails to add My Exposure is £NAC now quantify your holdings by account on each loan page, so it's easy enough to check.
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shimself
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Post by shimself on Nov 16, 2017 13:26:45 GMT
Do you think most people have a good handle on that? I keep asking AC to personalise the emails to add My Exposure is £NAC now quantify your holdings by account on each loan page, so it's easy enough to check. True, and a very good thing too nicely done. Still personalising emails isn't that hard / expensive. In other contexts Chris says that his crew don't do the emails (more's the pity)
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markb
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Post by markb on Nov 16, 2017 13:36:26 GMT
Haa anyone any idea why this particular loan, with to all appearances an honest borrower doing their best, came close to having people going against what I take to be AC's steer, when other, much more debatable went through by a country mile? I think maybe people got narked by the derisory first offer? The first offer certainly didn't cast them in a good light. Also, "doing their best" for whom? They have an asset and some creditors - I'd argue that the "honest" thing to do would be to sell the asset and pay all of their creditors in full.
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shimself
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Post by shimself on Nov 16, 2017 14:04:57 GMT
Haa anyone any idea why this particular loan, with to all appearances an honest borrower doing their best, came close to having people going against what I take to be AC's steer, when other, much more debatable went through by a country mile? I think maybe people got narked by the derisory first offer? The first offer certainly didn't cast them in a good light. Also, "doing their best" for whom? They have an asset and some creditors - I'd argue that the "honest" thing to do would be to sell the asset and pay all of their creditors in full. And quite probably shut down the business in the process
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markb
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Post by markb on Nov 16, 2017 15:27:12 GMT
All roads lead to Rome. You asked AC the relevant Q&A yourself. If AC expect the business not to have free cash flow going forward (and remember that so far it's repeatedly under-performed vs AC's expectations, despite engaging with the specialist advisers that AC recommended), it probably won't be long before it's unable to pay its suppliers again.
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Post by lynnanthony on Nov 16, 2017 15:33:17 GMT
The first offer certainly didn't cast them in a good light. Also, "doing their best" for whom? They have an asset and some creditors - I'd argue that the "honest" thing to do would be to sell the asset and pay all of their creditors in full. And quite probably shut down the business in the process Yes. If a business is unable to honour its commitments that can happen. If it can honour its commitments the question doesn't arise.
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markb
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Post by markb on Nov 16, 2017 16:14:12 GMT
If the rationale for Option A is to avoid forcing them to sell, then at the very least it ought to have included an anti-embarrassment clause in the settlement agreement - so that after we release the security, if they end up selling anyway, then they have to pay us the remainder of what they owe us, out of the proceeds of the sale.
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trouble
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Post by trouble on Nov 16, 2017 17:33:37 GMT
If the rationale for Option A is to avoid forcing them to sell, then at the very least it ought to have included an anti-embarrassment clause in the settlement agreement - so that after we release the security, if they end up selling anyway, then they have to pay us the remainder of what they owe us, out of the proceeds of the sale. And what's to stop the premises being mortgaged again down the line to try and repay unsecured creditors again. What is effectively being said here is that the size of the original loan was way beyond the pale for this business to ever service given it couldn't now service a £90k loan to repay the residual interest. If this isn't a slam dunk situation whereby the owner should sell the property then i don't know what is. Seriously this owner should sell up, bank some proceeds whilst they can, and retire on them, before they have nothing, because if they end up with nothing then we were wrong to wave anything due to us. Looking back we could have done them the biggest favour ever by enforcing a sale, time will tell, I hope we were wrong (I did vote A).
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Post by jevans4949 on Nov 16, 2017 17:59:18 GMT
I did vote B, but I suppose we're better off out of it. Chasing the last £20k (or setting up a new loan) would involve even more time for Assetz staff, and enforcing the sale of the property would have cost everyone even more.
It wouldn't surprise me if the business closed its doors before 3 more years passed. Although I've never seen the property, I won't be surprised if it fails to achieve half the valuation we had for it at the start.
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kermie
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Post by kermie on Nov 16, 2017 20:39:01 GMT
I also voted B, and still see no reason why the borrower could not take a new loan via AC to cover the interest (and help keep unsecured borrowers at bay, for that matter). It might be the buffer the business needs to get back on an even keel (or, alteratively simply delay the inevitable).
In any case, I'll be content to draw a line and move on, no hard feelings.
In Edit: to turn it on its head - we appear to be saying that a large injection of cash which was sufficient to pay off the original capital (£400k+?) was not enough to get the business back into rude health? If that's the case, there is no hope for the business, TBH. That's rather a sad outcome.
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mikes1531
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Post by mikes1531 on Nov 17, 2017 3:26:09 GMT
In Edit: to turn it on its head - we appear to be saying that a large injection of cash which was sufficient to pay off the original capital (£400k+?) was not enough to get the business back into rude health? If that's the case, there is no hope for the business, TBH. That's rather a sad outcome. ISTM that there's another factor here that hasn't been mentioned... AIUI, the late borrower used to be helping to run the business. With him out of the picture, isn't the business going to need to bring someone else in to do the work he was doing -- and have to pay them to do it? One of the usual arguments in favour of taking out life insurance on working people is so that any insurance proceeds can be used to replace the income of the deceased. In this case, the insurance proceeds were used to pay off most of the AC debt. While the business won't have AC to pay in future, they probably will have to employ someone to fill the gap left by the death of the joint borrower. So unlike kermie's suggestion above, I don't see that the large injection of cash into the business really has improved the business's finances.
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Post by Butch Cassidy on Nov 29, 2017 15:02:02 GMT
There has been a significant interest repayment run this afternoon; obviously I can't confirm the exact amount as being AC it is both impossible to know how much I was owed & whether any further is due but GOOD NEWS in principle  |
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matt
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Post by matt on Nov 29, 2017 15:03:00 GMT
Today there have been payments to a total of £44332.73 applied to the interest balance. This has been applied to 14 interest payments for 77.5% of the amount outstanding in each case. However, this leaves 2 interest payments still fully outstanding.
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sl75
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Post by sl75 on Nov 29, 2017 19:27:53 GMT
Today there have been payments to a total of £44332.73 applied to the interest balance. This has been applied to 14 interest payments for 77.5% of the amount outstanding in each case. However, this leaves 2 interest payments still fully outstanding. The repayments were spread out over the course of about an hour.... it looks like you posted part-way through the process. AC seem to have this part of the process mostly manual - other loans have had tell-tale human errors such as allocating funds against the wrong interest payment. I'd guess that splitting a payment in this manner meant the admin staff needed to work down the huge list of payments, calculate the correct amount to allocate against each payment, open a screen to allocate funds, enter the relevant amount, confirm stuff, wait for the database to slowly creak along processing the payments, check a report that states it processed ok, and then repeat for each subsequent payment. Probably the pause before the final payments would have been while they double-checked for any errors they'd made earlier in the process, and triple-checked the figures they were about to enter for the final 2 payments....
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matt
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Post by matt on Nov 29, 2017 22:58:43 GMT
Yes, the final 2 payments have indeed been applied. So the total payment from the borrower was £63,125.84, 77.5% of the outstanding interest, completing full and final settlement of the loan.
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