oldgrumpy
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Post by oldgrumpy on Feb 10, 2016 11:11:29 GMT
Investors may wish to review this loan, bearing in mind the shenanigans noted here . |
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Post by pepperpot on Feb 10, 2016 11:39:09 GMT
Thanks, certainly ok for the next 2 months while there is still retained interest used for the monthly payments, but beyond that - ? At least they are separate legal entities (Ltd's) and AC have a stake in his home!
Was it the bank forcing foreclosure? If so, the same problem might not arise on AC because there is no bank debt, iirc.
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Steerpike
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Post by Steerpike on Feb 10, 2016 11:42:01 GMT
I sold out most of my care home investments a while ago but I still have a small chunk of this one and I am fairly happy with the security.
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oldgrumpy
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Post by oldgrumpy on Feb 10, 2016 12:01:14 GMT
Trading suspended 11:50  |
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daveb4
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Post by daveb4 on Feb 10, 2016 12:07:37 GMT
Hopefully OK as valuation on commercial property says as closed £700k with lease, plus approx £300k in resi home against debt £700k.
If does go down completely after all costs and force sale should be enough to cover us so not too concerned at the moment!!!!! Trouble is if no one wants to buy as a care home what is the value?
Could get messy and take time but hopefully there is someone in the wings to purchase at £700k+ - owner will certainly hope so to make sure resi home not taken away?
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Post by pepperpot on Feb 10, 2016 12:10:51 GMT
I tested the market with a £50 sale at 11:40 (went in one lump), maybe I should've tested a bit harder.
Agree with above though security looks fine atm.
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oldgrumpy
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Post by oldgrumpy on Feb 10, 2016 12:21:29 GMT
I think the borrower should reveal (somewhere) exactly what the bank's "onerous" demands were which have forced this situation. Shame the bank (we can see who he banks with!) if disrupting/destroying the operation of hard working care home operators with so little notice is so core to their own business.
This has been up on the FK since 3 Feb. The borrower is making payments personally in the meantime. His actual message on the FK 8 Feb update reveals a lot so maybe I shouldn't put it all here. One question is, if the borrower informed FK on 3 February about going into administration, why did he not inform AC at all. AC found out from this forum.
I'll delete this quote if our mods say I should!
"The situation has come about because we have asked the bank to move us from Interest + Capital payments to Interest Only to alleviate cashflow within the business.
The bank took advice from their advisors*, also A*** P***ners, who stated that despite the business being profitable and cash generative, the best course of action would be to sell the care homes. Unfortunately in order to provide adequate time to do so, the conditions set upon the director were so onerous that it was very clear that they were directing administration as their preferred course of action."
* also appointed as administrators!!!!
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Mike
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Post by Mike on Feb 10, 2016 12:26:45 GMT
Thanks for heads up. I reduced my holding before suspension but not to zero since I agree that it looks like it should be fine security
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am
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Post by am on Feb 10, 2016 20:44:58 GMT
There's a short article in today's Shropshire Star.
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kermie
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Post by kermie on Feb 10, 2016 21:00:55 GMT
Well, I have a lot of sympathy with the C*******t owners if oldgrumpy 's update is correct from the FK site - i.e. the bank has basically orchestrated the administration. This is the kind of practice RBS were caught doing in recent years - forcing asset-rich businesses into administration (through punitive charges from their "business support" teams) just so they could then hand-over to their "recovery" teams who could make a nice little earner on the property/asset in question). Accepted this might be a little different, but it has the same bad smell to it (and I have no idea which bank is the relevant one in this case). I recall noting that the #194 director's residential property is held as a second charge which typically means that the borrower is even more motivated than usual to help get out of the mess. Maybe AC can step in with a loan....? :-) |
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bugs4me
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Post by bugs4me on Feb 10, 2016 23:12:40 GMT
Well, I have a lot of sympathy with the C*******t owners if oldgrumpy 's update is correct from the FK site - i.e. the bank has basically orchestrated the administration. This is the kind of practice RBS were caught doing in recent years - forcing asset-rich businesses into administration (through punitive charges from their "business support" teams) just so they could then hand-over to their "recovery" teams who could make a nice little earner on the property/asset in question). Accepted this might be a little different, but it has the same bad smell to it (and I have no idea which bank is the relevant one in this case). I recall noting that the #194 director's residential property is held as a second charge which typically means that the borrower is even more motivated than usual to help get out of the mess. Maybe AC can step in with a loan....? :-) Typical of the banks if the reports (rumors) are accurate. Will be interesting to see how AC handle this although the underlying security looks sound. I had an ex-client that elected for administration a while back as the bank monthly monitoring charges, account administration fees, etc, etc were increasing every quarter for no apparent reason. He went from a profitable business to a break-even situation and decided all the stresses of running a business simply wasn't worth it. Fortunately he came out of it 'okayish' but if he had continued trading then things could have been a disaster. Still will have to see how this plays out if indeed it was 'initiated' by his bank - pure speculation though.
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Post by crabbyoldgit on Feb 18, 2016 15:40:55 GMT
So the administrator is going to continue paying the full rent and has appointed a care company to run the home as a ongoing bussiness. Now i think the previous bussiness was profitable just had cash flow issues and if a sell is made to a new operator one would assume they would take over the lease and all is fine.Or have i got this wrong and should run for the hills.No other party involved in the running of the homes has a call on our assets and the ltv looks ok, so why do i feel uneasy.
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sqh
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Before P2P, savers put a guinea in a piggy bank, now they smash the banks to become guinea pigs.
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Post by sqh on Feb 18, 2016 16:11:26 GMT
chris Can you please explain if this loan is still eligible for the GBBA ? Before suspension this loan was liquid and was eligible for the GBBA. There is suddenly over £80k available. Is that from GBBA accounts that have unloaded due to a monitoring event ?
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Post by chris on Feb 18, 2016 16:50:43 GMT
chris Can you please explain if this loan is still eligible for the GBBA ? Before suspension this loan was liquid and was eligible for the GBBA. There is suddenly over £80k available. Is that from GBBA accounts that have unloaded due to a monitoring event ? Still qualifies for GBBA however it will not buy anything whilst there is a monitoring event in place, it just holds station. If the monitoring event is cleared and the loan is indicated as being back to normal health then it will continue to buy.
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dermot
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Post by dermot on Feb 20, 2016 4:40:05 GMT
Oo-er ... via the GBBA, I seem to be exposed to this loan to the tune of £00-01 - time to panic.
Looks to be some sneaky shenanigans by the bank, doesn't it?
DD
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