dead-money
Rocket to the Moon
Posts: 746
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Post by dead-money on Aug 6, 2020 16:23:23 GMT
For those with a MLA account or sufficient AA holding to have visibility; check out the marketplace tab for details on the vote.
It's a horribly formatted block of text, but explains how CBILS is going to work alongside existing AC P2P loans.
Also explains why an updated site valuation was uploaded earlier today...
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puddleduck
Member of DD Central
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Post by puddleduck on Aug 6, 2020 16:54:36 GMT
I hope there have been many more CBILS loan that what is visible to us
If this is the first and given the scheme only has a few weeks left to run, the effort of AC signing up won't have been worth it.
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dead-money
Rocket to the Moon
Posts: 746
Likes: 654
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Post by dead-money on Aug 6, 2020 17:22:18 GMT
Well it's £1.9M less to be funded from Access accounts for starters. So definitely worth it in opinion of some.
It's covering the retained interest on the already drawdown £4.2M, including it's extension, so that's a plus as a retail P2P investor.
Only downside seems to be surrendering our rights to call in the loan to the institutional investors.
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Post by honda2ner on Aug 6, 2020 19:25:14 GMT
Looks to me like the advantages and disadvantages add up to zero, the new loan ranks pari passu on security but balanced by no more retail money being put in, the loss of actionable rights to default are questionable, a certain Scottish Laird has taught us the rights to call a vote on default lie squarely with AC so it was always a flawed right for investors.
I'm tempted to vote A just because it increases the probability of the development reaching completion.
Still mulling it over though as it's not a clean, elegant solution. Concerned about bending of the CBILS framework to fit P2P which might have nasty unforeseen effects later.
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Post by capricorn on Aug 6, 2020 21:13:04 GMT
Looks like a pretty good arrangement to me. 6 months extension to allow for Covid delays with interest prefunded and the LTGDV not going up too much. The borrower gets a lower interest rate for the CBILS portion with HMG paying the first year's interest and arrangement costs, if I've read the scheme correctly, so the loan seems to be significantly de-risked and we're still getting 8.5% interest. And the big worry of an institutional lender coming in with us having to drop to second charge security hasn't happened. If I read the updated valuation correctly there is no inflation of the value of the completed scheme to keep the LTGDV down as used to happen pretty regularly with FC refinances of over-running property loans. I think AC have handled it very well. Loss of voting rights? - I'd assume the institutional lender will 'vote' for the action that maximises recovery in an enforcement scenario as we would. What's not to like? No doubt someone will tell me!
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