Jeepers
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Post by Jeepers on Apr 13, 2018 21:19:19 GMT
Fine, providing they aren't setting a nasty precedent whereby any borrower thinks they can default on their loan and then buy back the assets on the cheap. They can only do this if Lendy have lent more than the open market value. But of course this is what they usually do. Not lending over market value is the precedent that needs to be set. The trouble is, it's worth what it's worth. Lendy could repossess the site and go through all the extra costs of building out or sell it as an on going project. Whether that is by accepting an offer from the borrower or to a third party, it doesn't matter. If the borrowers offer is the highest option, then that is the best solution.
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littleoldlady
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Running down all platforms due to age
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Post by littleoldlady on Apr 14, 2018 6:59:50 GMT
They can only do this if Lendy have lent more than the open market value. But of course this is what they usually do. Not lending over market value is the precedent that needs to be set. The trouble is, it's worth what it's worth. Lendy could repossess the site and go through all the extra costs of building out or sell it as an on going project. Whether that is by accepting an offer from the borrower or to a third party, it doesn't matter. If the borrowers offer is the highest option, then that is the best solution. Agreed. We are where we are - between the Devil and the sea. My heart says don't let the borrower win but my brain says take the best financial option for me, even if it sets a bad precedent. Classic moral hazard.
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Post by GSV3MIaC on Apr 14, 2018 7:21:30 GMT
Not if it prejudices our ability to go after the borrower's other assets, PG, etc....
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izigor
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Post by izigor on Apr 14, 2018 14:51:29 GMT
Not if it prejudices our ability to go after the borrowwr's other assets, PG, etc.... Absolutely. This business relies on many factors. Appropriate valuations is only one of them. Educated decisions is also another one. We can't rely on decisions that are made by fears and impatience and on this note, I prefer the 'build-out' to remain on the table and remain an acceptable path. I would also say the analogy of "one bird in the hand is better than two birds in the bushes" isn't applicable. It's more like "A murder of ravens in the bush is better than bird poo in the hand" ... or something like that :-) But coming back to the point that GSV3MIaC said, if we make a deal which involves a diluted loan reimbursement with the borrower then that is likely to be it .. no other avenues, such as Personal Guarantees for recovery of full capital and interests. I am expecting (I mean wishing) the deal will likely include responsibility of a build out with the borrower and hopefully further security.
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Jeepers
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Post by Jeepers on Apr 14, 2018 14:58:37 GMT
I'm interested to know how the borrower is financing his £6m offer. If this is from his personal wealth then the PG will be of great benefit. If he's borrowing it, that's a different story and the offer should be accepted.
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Liz
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Post by Liz on Apr 15, 2018 2:13:51 GMT
Not if it prejudices our ability to go after the borrower's other assets, PG, etc.... PG''s are pretty worthless in my experience. The borrower has had plenty of time to organise his finances. They aren't best of palls with L and hence won't be in a hurry to pay-up on a PG. PG vs PF, which is more useless? Lenders haven't seen a penny from either in a long time, nor are they likely to any time soon.
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Liz
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Post by Liz on Apr 15, 2018 2:20:02 GMT
I'm interested to know how the borrower is financing his £6m offer. If this is from his personal wealth then the PG will be of great benefit. If he's borrowing it, that's a different story and the offer should be accepted. If they had £6m+ sat in the bank, why borrow @20%pa? Unless their intention was to take the platform for a ride, but I don't think that is the case.
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GeorgeT
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Post by GeorgeT on Apr 20, 2018 12:03:46 GMT
Today,Fri 20th, is the deadline LY set for doing a deal with the borrower. The last update said if they hadn't struck a deal with the borrower by the end of today they would be proceeding with the build out option. I hope LY inform us of their decision ASAP.
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Jeepers
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Post by Jeepers on Apr 20, 2018 12:46:38 GMT
In that case, voting should be open !
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tombraider
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Post by tombraider on Apr 24, 2018 14:02:44 GMT
Today,Fri 20th, is the deadline LY set for doing a deal with the borrower. The last update said if they hadn't struck a deal with the borrower by the end of today they would be proceeding with the build out option. I hope LY inform us of their decision ASAP. so has a deal been struck or is it another head in the sand moment
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Post by buttchopf23 on Apr 24, 2018 15:23:41 GMT
We will find out on Friday
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Jeepers
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Post by Jeepers on Apr 24, 2018 19:36:30 GMT
We will find out on Friday Will we ? Or will we be told it's repaying in a month, then 2 months and the cycle begins
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Post by buttchopf23 on Apr 25, 2018 8:45:04 GMT
We will find out on Friday Will we ? Or will we be told it's repaying in a month, then 2 months and the cycle begins We will find it out friday lol If they had a deal in place, I guess they already would have told us. My hopes are slim
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izigor
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Post by izigor on Apr 27, 2018 10:48:46 GMT
I know exactly what's going to be said .. but I keep checking the 'Recent Updates' .. Someone please help me ... it's beyond unhealthy  |
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rrrupert
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Post by rrrupert on Apr 27, 2018 15:01:32 GMT
Well...a deal in principle. Sounds positive. No indication of the size of the haircut though.
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