PBL 069; PBL 070 & PBL 071 - the Gloucestershire Loans

I must confess that apart from reading this forum and contributors like cooling_dude I don't do any other DD I don't have much time and knowledge to do this. 

So only because of all of you I' aware of the issues and evacuate from the most dodgy loans when they're past their prime positive days. 

This forum is a bottomless wealth of information.

Thank you !!!!!!!!!!!!!!

I'm only (groggily, blearily) now reading through the SS loanbook updates. Just checking in on my favourite Gloucs loans. As we're approaching the end of the year, Let's recap and enjoy the saga of key loan updates (ltalics mine)


29th April 2016 :  Expecting repayment within the next month. Part sale of business site agreed with enough to clear our finance <good stuff>

11th May 2016   :  Repayment expected shortly <great>

24th June 2016 :  <appears to have been extended by 3 months, unannounced - Whuh?>

8th July 2016:  Full repayment expected over the next couple of weeks.   <is this still the agreed part sale clearing the loan? OK, whatever, good.>

18th August 2016: Hoping to see investment cash starting to trickle through next week. We will repay a property at a time as it arrives. <sorry, what? What happened to the sale? Investment from what?

5th September 2016: Expected repayment imminently. <ok, well good, I guess..?>

16th September 2016: Repayment by the 22nd September advised. <Righty ho, well I don't really know what's going on and it's taken rather a long time, but I won't need to worry about it as it's finishing next week>

28th September 2016: (ad hoc email to question from investor from SS) (http://p2pindependentforum.com/thread/6872/pbls-37-38-39-69?page=1&scrollTo=147401): The properties being sold to achieve repayment of the loan and we have been informed that the anticipated completion date is 29 September. Completion is subject to completion of due diligence being undertaken so completion may not happen tomorrow and this is largely out of our hands. We will keep you updated. <ok, tomorrow. Done is done.>

24th October 2016: Delays with the purchaser, we have asked the borrower to seek bridging finance elsewhere. The broker estimates mid November, otherwise we have at least 2 buyers ready in the wings.   <Why has it taken you a month to tell me that, I was expecting it to finish on September 29th. That's quite a significant delay - what's the problem? We had a seemingly firm completion date that was the next working day and now it's going to take a further 2 months from that? And why are you talking about an alternative, are you saying it's actually not going to work out?

11th November: Investment funds still expected soon; however we have encouraged the borrower to market the property for sale on an accelerated basis <Oh yes I forgot about those investment funds. Hey, wait, what about that sale that was happening on 29th September? Nevermind. Oh, but you also said there were at least 2 buyers ready in the wings - can't we just sell to the highest bidder, why the need to actively market?

25th November: Borrower refinancing shortly (advised by the broker). We have seen the finance offer and are reasonably confident of a satisfactory resolution within an acceptable timeframe. <hey, what about those investment funds you've been talking about since August? Ok, well how is this borrower (by now confirmed as bankrupt along with her spouse) possibly going to refinance this huge loan? Which lender is going to take this if SS don't want to? Hey, but weren't there 2 buyers ready in the wings? That comment seems to have disappeared from the website. Maybe I imagined it?

23rd December: The Borrower is finding refinancing rather challenging so has no choice but to market the property for sale. Marketing will commence in early 2017 with supervision from our receivers to focus the Borrower's mind <Refinancing a multi million pound esoteric property by a bankrupt borrower at 70%+ LTV challenging? You surprise me sir! Anyway, I thought it was likely to be marketed on an "accelerated basis" in mid-November? And what about those 2 buyers in the wings, and the investment funds?  And as the borrower has been bankrupt since about September, can you just confirm you've been covering all of the interest payments on the 6 loans outstanding since then, and will do so until they're sold? (April 2017, if we're optimistic?)  Isn't this really a defaulted loan now, anyway?
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I'm sure plenty of SS investor decisions were made (at least, initially) on the apparent substance of these loan updates. As it happens, the giant magical vacuum cleaner that is the SS secondary market has made any direct investor financial concern irrelevant. They can sell easily, often in seconds, and they still can. Which is fortunate, for now, isn't it?

On a more positive note, as the fundingsecure team are clearly still hard at it on Christmas Eve, I happened to notice what I think is an excellent example of how communication should be done on a troubled loan (T****d Property (2891725647). The story is long, and not straightforward, but the updates are a) clear b) specific e.g. "Property is on the market at £75,000 and can be seen on Rightmove" c) not contradictory d) very regular. You'll also note that the loan was rightly defaulted within 2 months and is of course not available on the platform for re-sale at par or at any price.

More trouble down in Cotswold, this time from the disgruntled neighbours. Reported November 2016 in the 'Gloucestershire Live' newspaper. Are we allowed to post the link?


“In the enforcement notice..<snip>  .. another £2.5m build which will begin in February <snip>"


Not sure I'd lend another £2.5m, on top of the existing £3.7m (PBL037 - £151,000, PBL038 - £560,000, PBL039 - £700,000, PBL069 - £975,000, PBL070 - £910,000, PBL071 - £422,000) which is overdue to a company owned by bankrupts who even the Daily Mail doesn't like for selling Scandinavian forestry land! And what type of gigs only have 65 people in the audience?



Kevin.

/Mod Hat On

No you can't post the link westonkev, and nor can you produce enough of the quote that a google search would take anyone straight to the article (which has name, and photo of at least one of the borrowers, IIRC). SS investors can easily get there, since they know the venue name(s) already.

/mod hat off now ..

I share your amazement that the borrower thinks anyone is likely to lend a pair (it is now a pair, isn't it?) of bankrupts an extra £2.5m to build a road they should already have built.
IIRC though the gigs were maybe rather specialised?? Or am I conflating this with another borrower. 8>.

I left RateSetter in October 2016, hence why my icon doesn't have "representative of". I posted it in my own name, views my own.