rogerbu
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Post by rogerbu on Jun 10, 2015 13:11:17 GMT
Money&Co appear to be facing their first test - T** B****** C*
After being two weeks late with May's repayment. M&Co state that 'We are in active dialogue with the Company's advisers and we are aware that the Company is seeking to put in place a refinancing proposal'
Questions
1. What does expression 'the Company's advisers' infer?
Have they already gone into administration or similar?
2. What might a 'refinancing proposal' look like?
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iren
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Post by iren on Jul 17, 2015 15:32:15 GMT
Have received an email from M&Co stating that the bailiffs have missed this months payment. That's after making up the previous missed payment (for May) and making June's payment on time. It appears this may become a long running saga, with a borrower that's on the edge.
As for refinancing, the bailiffs already clarified in the original Q&As that the reason they were seeking an M&Co loan was because they were unable to obtain bank finance. The route to bank finance would be establishing a payment record with the P2B lender, which isn't what's happening.
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iren
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Post by iren on Jul 23, 2015 11:40:29 GMT
So the borrower now states they are "restructuring" the business. M&Co has accepted a plan under which payments will be missed in July and August and recommence in September, with two months being added to the term of the loan. There is no reference in the email to how this affects interest accrual, as simply having the same two payments made at the end of the loan would leave lenders short of two months interest. This is where the lack of published information on ongoing loans, such as payment schedules etc., is a downside. The fact that lenders get no vote on the proposal also means we can be left short of a truly meaningful explanation.
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rogerbu
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Post by rogerbu on Nov 21, 2015 14:33:16 GMT
It's been a long saga, but M&C are now offering to buy back all outstanding capital on this loan - 21 day offer, failure to positively tell M&C that you wish to accept means that you won't get the offer.
At the end of the day we will have lost about 3 months of interest.
Overall, I think it is a fair offer.
Hopefully M&C have learnt how to recognize suspect borrowers. (3rd and subsequent repayments were all a problem)
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iren
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Post by iren on Nov 21, 2015 16:26:45 GMT
Yes, a very good result considering that the preceding plan foresaw a recovery of 35 pence in the pound over 5 years as the best possible outcome for lenders.
I learned something from this, as I was never happy with the vague answer provided by the borrower in the Q&A re how the money would be used by the business.
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