bfish
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Post by bfish on Oct 19, 2018 10:00:36 GMT
Following the October newsletter which mentioned new Board members Raj Kumar and Carl Davies, I note (from Companies House) that Rajinder Kumar has not only become a Director, but is also the SOLE 'Person With Significant Control' !
Also, he is the new 75% Shareholder of the Company, with the sole(?) 'Right to Appoint and Remove Directors' !!
And finally, he has registered a Charge over 'All Freehold and Leasehold Properties' connected with the Company.
Have we just witnessed a takeover of Funding Secure Ltd ?
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SteveT
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Post by SteveT on Oct 19, 2018 10:18:22 GMT
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bfish
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Post by bfish on Oct 19, 2018 10:38:27 GMT
But what do you think it means, Steve... ?  |
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SteveT
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Post by SteveT on Oct 19, 2018 10:45:34 GMT
Just as it appears. He has bought into the company and now controls >75% of the shares. Apparently, Nigel and Richard are both still there as Directors and (minority) Shareholders, presumably on some sort or lock-in / earn-out deal to keep the day-to-day business on an even keel in the short term.
What it may signify for the longer term, I've no idea.
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james21
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Post by james21 on Oct 19, 2018 11:44:58 GMT
Clearly the originals have cashed in to a degree and good luck to them as they have built the business up, and know that the fortunes of a platform can be very fickle, and depend on factors out with the business, eg economic downturn (possibly brexit driven) fall in property market, competition from others, a dry up of the pipeline, a dry up of lenders funds due to the poor management of the loan book which is becoming more apparent as so many loans are now ageing. It remains to be seen what the new blood will bring to the table, I hope they are not in it just to drive the borrowing sales but do look at the underlying problems and sentiment of the lenders. They can do little better than study the posts on this board to understand the issues that FS to date have woefully failed to address. I will keep an open mind and wish them luck while running down my own loan book in favour of better managed platforms all be it with a lesser headline rate of return
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Post by crystal on Oct 19, 2018 12:50:55 GMT
Appears to be more than buying in - at least in the traditional sense - Mr Kumar has provided a loan (unknown size) to Fundingsecure Ltd and in return has taken a debenture over all FS's property loans. What is not immediately clear is where his loan ranks vs all P2P lenders' loans.
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arby
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Post by arby on Oct 19, 2018 12:57:13 GMT
Appears to be more than buying in - at least in the traditional sense - Mr Kumar has provided a loan (unknown size) to Fundingsecure Ltd and in return has taken a debenture over all FS's property loans. What is not immediately clear is where his loan ranks vs all P2P lenders' loans. According to the T&Cs it is clear; lenders capital AND interest ranks above FS commission
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Post by crystal on Oct 19, 2018 13:17:26 GMT
Good spot - the debenture is worded to provide the lender (Mr K) "first legal mortgage" over all current and future properties owned by FS Ltd. I am not an expert in this area and only understand the basics and my reading is that first legal mortgage ranks ahead of other borrowings. It is possible that the T&C's are now out of date / require updating.
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arby
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Post by arby on Oct 19, 2018 13:33:39 GMT
Good spot - the debenture is worded to provide the lender (Mr K) "first legal mortgage" over all current and future properties owned by FS Ltd. I am not an expert in this area and only understand the basics and my reading is that first legal mortgage ranks ahead of other borrowings. It is possible that the T&C's are now out of date / require updating. Properties owned by FS should not include any of the properties lent against (as it is not owned by FS in any sense of the word). Equally, any investor funds awaiting distribution to the borrower should be kept in a ring fenced investor account which would also not be classed as FS assets in the case of winding up etc.
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blender
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Post by blender on Oct 19, 2018 13:47:33 GMT
People have been too rattled by the COL experience. FS may own a lock-up garage in which they keep bling and artworks, but the lenders' charges on the security properties will be Fundamentally Secure.
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elliotn
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Post by elliotn on Oct 19, 2018 14:33:01 GMT
Good spot - the debenture is worded to provide the lender (Mr K) "first legal mortgage" over all current and future properties owned by FS Ltd. I am not an expert in this area and only understand the basics and my reading is that first legal mortgage ranks ahead of other borrowings. It is possible that the T&C's are now out of date / require updating. I think others have mentioned, this will be FS own properties ie premises, nothing to do with borrowers’ properties that lenders invest against, RK has no ranking there.
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adrian77
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Post by adrian77 on Oct 19, 2018 18:52:42 GMT
Interesting and well spotted - so a lending company is itself a borrower.
I guess the question is : why did FS need a loan and what interest is Mr Kumar charging?
Wonder if FS approached FC! Or maybe Mr Kumar did!
I don't think I will be reversing my decision to keep running down my FS holding until I see how the backlog of overdue loans pans out...
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Post by mrclondon on Nov 2, 2018 16:30:18 GMT
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arby
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Post by arby on Nov 2, 2018 16:55:47 GMT
Thank you for posting that. "This will include hiring more staff and expanding its product offering." Will be interesting to see what that means. I would probably prefer they focus instead on perfecting/improving their current offering, but I'll still look at what they do with interest.
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rs
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Post by rs on Nov 2, 2018 17:42:17 GMT
Thank you for posting that. "This will include hiring more staff and expanding its product offering." Will be interesting to see what that means. I would probably prefer they focus instead on perfecting/improving their current offering, but I'll still look at what they do with interest. I would expect a new product like FS Wealth where you invest £1k minimum and the £1k minimum goes to all loans on secondary & new loans.
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