m2btj
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Post by m2btj on Dec 14, 2017 9:39:20 GMT
In their wisdom MT have settled on a debenture, which is not secured by any physical assets or collateral. Debentures are backed only by the credit worthiness & reputation of the issuer. I said in my previous post that this type of non asset backed investment is a leap of faith in the borrower to repay the loan. I'm sure MT have gone through the legal process & have an indenture legally binding the borrower.
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stevio
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Post by stevio on Dec 14, 2017 9:59:23 GMT
Its a lot of risk for 3m interest
A "claim" for £700k ish that may or may not be realised (cant see where the £1m and 71%LTV comes from?)
Separate holding company seems to have the freehold assets and majority of compensation, which is more likely to be received
There are assets here (freehold, equipment, invoices etc), but not secured by this loan, so presume they are already secured by other loans
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sirius
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Post by sirius on Dec 14, 2017 11:27:35 GMT
Not convinced about this one. It appears that there are a couple of charges against the company which I guess is the freehold issue mentioned above. I don’t understand why the existing charge holders would consent to a deed of priority relegating their charge below MT. I would have thought that the first thing that the company would have to do would be to clear any charge against the property before the trains go through it. Well sure, but we have been told we expect that an element of the compensation from the freehold could be used to pay off the gross loans, which I think means that the first charge holder AND our loan are covered. No need us to get priority As above: ...we expect that an element of the compensation from the freehold could be used to pay off the gross loans (bold mine) Not exactly legal speak to inspire confidence and certainty of a return of capital. (I know, I know, thats why it is not 1.5%!)
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sj
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Post by sj on Dec 14, 2017 11:57:18 GMT
This is exactly what I pointed out too. They make it sound like they have knowledge of things that could in theory go wrong. Anybody have an idea of what these might be? I assumed that the HS2 payout was a sure thing, although I do understand that the exact amount to be awarded does lie within a range of values at present.
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gustapher
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Post by gustapher on Dec 14, 2017 13:11:32 GMT
While I'm sure it will be fine I left FC due to so many defaults on unsecured business loans. Never again - and DD revealed nothing on half the defaults. A lot of the time company directors were taking advantage of the rules to fleece investors. At that point I decided asset-backed had to be the way to go.
As others have said why are they paying 12% for this? The risk feels unquantifiable.
Asset-backed this would be a yes. As it stands... no way.
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ozboy
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Mine's a Large One! (Snigger, snigger .......)
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Post by ozboy on Dec 14, 2017 14:43:16 GMT
Apologies Fellow Investors, for any who may have been waiting to see my "Report" from my Run By before possibly investing, I was alas unable to complete my gambol today.
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sirius
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Post by sirius on Dec 14, 2017 14:50:45 GMT
Apologies Fellow Investors, for any who may have been waiting to see my "Report" from my Run By before possibly investing, I was alas unable to complete my gambol today. Ah! But the question is, will you have a gamble tomorrow?
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ozboy
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Mine's a Large One! (Snigger, snigger .......)
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Post by ozboy on Dec 14, 2017 14:52:06 GMT
No, don't like the offering.
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jcb208
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Post by jcb208 on Dec 14, 2017 16:54:22 GMT
Nope the rate is to low for the short duration
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Post by beeje13 on Dec 14, 2017 17:37:24 GMT
I think this will turn out ok, but it is an odd loan - I would be interested to know how it came to Moneything?
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oik
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Post by oik on Dec 14, 2017 17:43:52 GMT
Nope the rate is to low for the short durationinterest Ditto. No strong feelings either way but I don't feel disposed to lending a large sum without asset backing, and equally seems not worth the bother and risk to a lesser sum for the small return of just 3 months interest.
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Post by eascogo on Dec 14, 2017 17:57:09 GMT
I think this will turn out ok, but it is an odd loan - I would be interested to know how it came to Moneything? Follow the HS2 trail on Google Earth, spot the factories, ask them if a short-term relocation loan would come in handy.
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shimself
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Post by shimself on Dec 14, 2017 20:25:41 GMT
I suspect it's all to do with speed. They were thinking the cashflow worked but it it didn't because life's like that. There is a real business, expanding, and it would be a lot of hassle to the business if they had to fight us off. I'd just like an better explanation from MT as to why we can't get some solid claim on the property.
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mary
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Post by mary on Dec 15, 2017 7:04:12 GMT
I think that there is as solid a claim on the property as is possible via the directors PGs, because the property is owned by a separate company and the link is the common directors.
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Post by SophieThing on Dec 15, 2017 8:08:41 GMT
Morning All,
FAQ's added to the platform.
Kind regards
Sophie
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