Post by scooter on Feb 16, 2024 13:04:03 GMT
I appreciate that the past cannot be changed, but I find it hard to accept that Kuflink was not aware of issues / changes regarding this loan some time before investors were made aware of the non existent refinance.
If the last drawdown was made in August 23 (Tranche 3) and no more tranches were issued, Kuflink must surely have been in touch with the borrower to find out what was going on.
Loan Information
01/11/2022 Tranche 1 83,995.79
22/06/2023 Tranche 2 43,270.44
24/08/2023 Tranche 3 38,610.55
Total 165,876.78
Aug 23 Valuation KK Funding 221,960.00
Loan case total borrowing 246,083.99
The August 2023 valuation report states that the project should be complete by 28th October 2023. It also appears to show that there were 3 more tranches to be paid out.
If the rest of the loan was not drawn down investors should have been told and given an update on how the exit strategy might be affected.
Did Kuflink have actual proof of a refinance deal in the offing?
The over use of the phrase " refinance taking longer than expected" in recent months is what prompted me to look at my portfolio in more detail. I suspect it is simply an untruth either from the borrower to Kuflink or worse from Kuflink to the investors.
I assume that the property was not finished to the standard required to get the completion certificates and since October 23 the borrower has been scrambling to do the required work to get the certificate?
Kuflink has an obligation to keep investors informed. I don't think they met that obligation on this loan. Investors may be stuck with the loan regardless but the FCA makes it clear that investors have a right to know about material changes to their loans in a timely manner, if only so that they can adjust their investment plans elsewhere.
Quoting the can kicker email from today...
No evidence of refinance provided.... I'm sorry, but Kuflink are having a laugh at investors expense.
If the last drawdown was made in August 23 (Tranche 3) and no more tranches were issued, Kuflink must surely have been in touch with the borrower to find out what was going on.
Loan Information
01/11/2022 Tranche 1 83,995.79
22/06/2023 Tranche 2 43,270.44
24/08/2023 Tranche 3 38,610.55
Total 165,876.78
Aug 23 Valuation KK Funding 221,960.00
Loan case total borrowing 246,083.99
The August 2023 valuation report states that the project should be complete by 28th October 2023. It also appears to show that there were 3 more tranches to be paid out.
If the rest of the loan was not drawn down investors should have been told and given an update on how the exit strategy might be affected.
If the loan refinance was delayed because there are no completion certificates as stated in the Loan updates, I might have expected the borrower described to us in the loan case below to have been aware of that fact.
Loan Case "Our borrower has undertaken ground-up projects previously with their 26 years of experience covering all phases of development and renovation"
Did Kuflink have actual proof of a refinance deal in the offing?
The over use of the phrase " refinance taking longer than expected" in recent months is what prompted me to look at my portfolio in more detail. I suspect it is simply an untruth either from the borrower to Kuflink or worse from Kuflink to the investors.
I assume that the property was not finished to the standard required to get the completion certificates and since October 23 the borrower has been scrambling to do the required work to get the certificate?
I appreciate that receivers have been brought in. I would like to know whether the property is finished? Whether the completion certificates have been received? What else is preventing the refinance from happening? And a realistic expectation of when this is likely to be paid back.
Kuflink has an obligation to keep investors informed. I don't think they met that obligation on this loan. Investors may be stuck with the loan regardless but the FCA makes it clear that investors have a right to know about material changes to their loans in a timely manner, if only so that they can adjust their investment plans elsewhere.
Quoting the can kicker email from today...
We have received confirmation from the receivers that the security property has been recovered and insurance cover extended. Our borrower has advised that they have received mortgage offers which they have been asked to evidence. We will continue to work with our receivers and will provide a further update by 15/03/2024.
No evidence of refinance provided.... I'm sorry, but Kuflink are having a laugh at investors expense.