ptr120
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Post by ptr120 on Jun 21, 2022 20:47:10 GMT
There is also nothing I can see in any of the paperwork preventing the borrower from making payments for overdue interest, or indeed partial capital repayments
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Post by ablrate on Jun 22, 2022 9:23:29 GMT
ablrate From an investors point of view who has not received any repayments in the last 10mths, a quote from UK series of the office springs to mind "Bad News and Irrelevant News" Not sure if this forum allows links - www.youtube.com/watch?v=vsLH70BrnnMIf not, YouTube David's "Bad News and Irrelevant News" | The Office I would humbly suggest that a £5.1 million injection into the business and the securing of future revenues to pay lenders back is neither bad news, nor irrelevant.
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Post by ablrate on Jun 22, 2022 9:32:28 GMT
We didn't expect a round of applause, but it seems that the addendum missed the mark. For simple clarity; £5.1 million has been injected into the business, essentially securing the debt upon completion of the northern project. The company has secured funders and buyers of renewable development projects that throw off cash which will be used to service/settle loans in the interim period and they are in the process of seeking equity which, again, will be used to service/reduce the debt. If all that fails there is c. £2m per annum coming in as of next year from these assets alone. I think where this may have missed is that it seems like 'jam tomorrow', that is not the intention. The intention is that this part of the AF businesses is on a more stable footing, with income coming in as of next year and/or a saleable asset to retire debt and outstanding interest. Now that it has a future income stream, which is certain upon completion of the northern project, that can be leveraged into 'jam today'. i.e equity/sale of the company/refinance/energy development projects to generate funds now to pay down debts. Nobody is now sitting on their hands and waiting for the northern project to be built, this has been the first phase that will allow the second phase to happen, we believe, quickly. Thanks for the clarity. Have we actually relinquished the whole of the 75% equity of F**ep*wer previously negotiated, or does it just apply to part of the company ie Doncaster. How do we now stand as far as the additional security for the remaining AF loans, because the original 75% equity was to remain until all of AF loans were repaid. Please advise. Good question. The share transfer hasn't happened yet, it is part of the next phase, but we wanted to let you know it was coming. Basically it would look odd to an investor if ABL holds the shares and not its management (that has been direct feedback), so when a deal is done on either a purchase or a cash injection (or both) then we would facilitate that transfer. The remaining loans, outside of FP will be part of any deal, i.e guaranteed/paid off etc. Those loans are very much part of the thinking of AF and ourselves. The holding of the shares was to ring fence the battery deals, incentivise further projects to be injected and incentivise to get these back on track. We have moved to a more stable position on the battery business now allowing refi/sale/cash injection to service/settle the loans and if giving back the shares achieves that, then all good.
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Post by ablrate on Jun 22, 2022 9:42:59 GMT
We didn't expect a round of applause, but it seems that the addendum missed the mark. For simple clarity; £5.1 million has been injected into the business, essentially securing the debt upon completion of the northern project. The company has secured funders and buyers of renewable development projects that throw off cash which will be used to service/settle loans in the interim period and they are in the process of seeking equity which, again, will be used to service/reduce the debt. If all that fails there is c. £2m per annum coming in as of next year from these assets alone. I think where this may have missed is that it seems like 'jam tomorrow', that is not the intention. The intention is that this part of the AF businesses is on a more stable footing, with income coming in as of next year and/or a saleable asset to retire debt and outstanding interest. Now that it has a future income stream, which is certain upon completion of the northern project, that can be leveraged into 'jam today'. i.e equity/sale of the company/refinance/energy development projects to generate funds now to pay down debts. Nobody is now sitting on their hands and waiting for the northern project to be built, this has been the first phase that will allow the second phase to happen, we believe, quickly. It is an interesting theory I'm especially interested in the theory I first mentioned yesterday. That when the debt becomes tradeable (likely outside the Loan Exchange) - will we see AF / a related party pop up with a low offer to buy it? Is there anything in the agreements made so far that would prevent that? Or set a floor on the price at which such a bid is allowed? Or open up the bidding to a wider audience quickly? Here are some other angles to consider it from - The equity taken by ABL as security has now been given back - The 1st charge over D has been given back - The strength of the security over S has been diluted - There is now another £5.1m that needs repaying, presumably with a return for the new lender - The estimated completion time at D is 8-12 months - For all that, despite the PGs & other options open to be considered to recover something / secure the debt owed, Ablrate lenders have got £25k between them There will be no low-ball offers and if there is then we wouldn't be accepting them, if lenders chose to that is their right, but that is nobody's intention. - The equity taken by ABL as security has now been given back
- As below its part of the next phase to raise cash. - The 1st charge over D has been given back
- In order to bring £5.1 million into the business to change an asset from C £500k value to c.£7 million. - The strength of the security over S has been diluted
- There is a second charge and upon the completion of D it will be twice the value, lenders are owed £750k, there is £950k minimum baked in over two years (if not settled ahead of this) - There is now another £5.1m that needs repaying, presumably with a return for the new lender- As there always would have been to finance the build. - The estimated completion time at D is 8-12 months
- That is correct - For all that, despite the PGs & other options open to be considered to recover something / secure the debt owed, Ablrate lenders have got £25k between them
- -Plus £250,000 on completion of the build with interest accruing on the loans, the business in a position to raise cash to settle loans and revenue from developing 200MW worth of projects.
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Post by ablrate on Jun 22, 2022 9:50:49 GMT
It is an interesting theory I'm especially interested in the theory I first mentioned yesterday. That when the debt becomes tradeable (likely outside the Loan Exchange) - will we see AF / a related party pop up with a low offer to buy it? Is there anything in the agreements made so far that would prevent that? Or set a floor on the price at which such a bid is allowed? Or open up the bidding to a wider audience quickly? When the Secondary Market was alive, a late payment of even a day was enough to suspend a loan and make it untradeable.
Yet, if these loans do become tradeable, someone would be able to buy a loan which is in default with no guarantee of any payments.
Surely, the only ones to benefit would be AF or cohorts who could buy at a discount, reducing their debt and paying any outstanding interest to themselves.
It is worth clarifying again. D&S together will be worth around £10mn and generating £2m in income per annum how is there 'no guarantee of any payments' and why, given the asset value and income would anyone sell the loan at a discount? It is likley, if they are trading, that outstanding interest would be capitalised, but given the prospect of the business being revenue generating outside of anything else that AF does to bring down the debt, it wouldn't make sense to discount beyond present money value maybe. I think we need to knock on the head the conspiracy that someone is going to swoop in and buy the loans for a deep discount, we certainly wouldn't be in favour of anyone selling if the prospect of full recovery is realistic.
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Post by captainconfident on Jun 22, 2022 10:37:19 GMT
I would like to thank the Ablrate representitive for choosing to engage with investors on this forum.
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ilmoro
Member of DD Central
'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 Jun 22, 2022 10:41:08 GMT
ablrate thanks for the comments. Could you answer the two points I raised Where is the income from the FFR contract for S going? Why not to lenders to pay down the interest on that loan? #113 The update has been provided on this loan but there is absolutely no mention of the project or the impact on it - so whats the status of this project/loan? Could I also ask that a consistent dating system for updates is adopted so they actually appear in order rather than the current chaos?
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GreenZero
Member of DD Central
The early bird may get the worm, but it's the second mouse who gets the cheese
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Post by GreenZero on Jun 22, 2022 11:03:32 GMT
ablrate From an investors point of view who has not received any repayments in the last 10mths, a quote from UK series of the office springs to mind "Bad News and Irrelevant News" Not sure if this forum allows links - www.youtube.com/watch?v=vsLH70BrnnMIf not, YouTube David's "Bad News and Irrelevant News" | The Office I would humbly suggest that a £5.1 million injection into the business and the securing of future revenues to pay lenders back is neither bad news, nor irrelevant. You really are getting more and more like David Brent... £5.1m more debt.....Mr F hasn't put £5.1m of his own money from his savings in to the company. He's borrowed it !! which will be soon be blown through with salaries and operating costs etc. Also whilst we are on the subject, where are the securities Mr F promised at the out set?? He is just borrowing more and more money from anyone who will lend it to him. So, yes it is bad news and irrelevant news to an investor, good news for Mr F as has been allowed to get his shares back, borrow more money and still not have to make any repayments. I've said it before and it is on record, #165 and the container loan need a coat of looking at. The limited knoweldge we have now, both of these loans STINK.
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hubert
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Post by hubert on Jun 22, 2022 11:16:35 GMT
It is worth clarifying again. D&S together will be worth around £10mn and generating £2m in income per annum how is there 'no guarantee of any payments' and why, given the asset value and income would anyone sell the loan at a discount? It is likley, if they are trading, that outstanding interest would be capitalised, but given the prospect of the business being revenue generating outside of anything else that AF does to bring down the debt, it wouldn't make sense to discount beyond present money value maybe. I think we need to knock on the head the conspiracy that someone is going to swoop in and buy the loans for a deep discount, we certainly wouldn't be in favour of anyone selling if the prospect of full recovery is realistic. What hold have lenders over that £2m income if it does not come directly to us. Please advise
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Post by ablrate on Jun 22, 2022 12:24:34 GMT
It is worth clarifying again. D&S together will be worth around £10mn and generating £2m in income per annum how is there 'no guarantee of any payments' and why, given the asset value and income would anyone sell the loan at a discount? It is likley, if they are trading, that outstanding interest would be capitalised, but given the prospect of the business being revenue generating outside of anything else that AF does to bring down the debt, it wouldn't make sense to discount beyond present money value maybe. I think we need to knock on the head the conspiracy that someone is going to swoop in and buy the loans for a deep discount, we certainly wouldn't be in favour of anyone selling if the prospect of full recovery is realistic. What hold have lenders over that £2m income if it does not come directly to us. Please advise It would be income from the business, and the business has debts (covered by security held by us and other lenders). The income is for a 25 year period (i.e £2mn per annum), so logically for the business to benefit from this revenue it has to make sure its creditors are onside and the only way they would be able to do that is to pay capital and interest on loans that they owe. It is the asset that is generating the revenue and you don't need a massive business infrastructure around it to keep generating that revenue, so a lender taking the assets because of none payment would still be able to capture that revenue. When reviewing whether to pull the trigger you would look at what you could sell it for or what income is in the business to pay down your debt. On completion of D and the joining of the two sites there is sufficient asset value (from the net present value of the income, taking into account operating costs) to sell and pay down loans, or amortise aggressively over a few years and also pay other commitments of the borrower. If the borrower wants to keep that income they will ahve to pay the loan.
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Post by ablrate on Jun 22, 2022 12:34:24 GMT
ablrate thanks for the comments. Could you answer the two points I raised Where is the income from the FFR contract for S going? Why not to lenders to pay down the interest on that loan? #113 The update has been provided on this loan but there is absolutely no mention of the project or the impact on it - so whats the status of this project/loan? Could I also ask that a consistent dating system for updates is adopted so they actually appear in order rather than the current chaos? It was being utilised to pay the staff (who were integral to getting the deal done). Now funds have been injected for the project we are reviewing with the borrower if this revenue can now be utilised for the loan. Its mothballed atm due to the market test. There is between £125k - £250k coming back when a sale is agreed, that will release some assignment of security but the entirety of the debt it is part of the consolidated debts of the borrower, hence being included in the update. Yes, its a nightmare sorry - that is why we put a 1 in front of it to make sure it was at the top. I have spoken to dev to clean this up and have the date posted as a systematic thing.
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Post by Ace on Jun 23, 2022 9:30:04 GMT
The payments are rolling in now. Around 2 week's of the missing 10 month's interest.
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GreenZero
Member of DD Central
The early bird may get the worm, but it's the second mouse who gets the cheese
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Post by GreenZero on Jun 23, 2022 9:40:04 GMT
The payments are rolling in now. Around 2 week's of the missing 10 month's interest. Some groundbait for the fishes and that's all folks
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cte
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Post by cte on Jun 23, 2022 10:04:56 GMT
BREAKING: Ablrate website crashes as several investors simultaneously log in to see literally tens of pounds deposited into their accounts Attachments:
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Post by charl12345 on Jun 23, 2022 14:45:49 GMT
The payments are rolling in now. Around 2 week's of the missing 10 month's interest. Is there any information about the method used to apply funds to each loan (e.g. pro-rated total funds available against value of loan outstanding)? These payments are now showing as paid (albeit late) even though it was not a complete month's interest - do we know if/how the monthly interest shortfall will be accounted for?
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