mickj
Member of DD Central
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Post by mickj on May 24, 2016 17:26:33 GMT
I don't mind at all and nice to get the email with a full explanation, another couple of months then.
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jonah
Member of DD Central
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Post by jonah on May 24, 2016 18:51:31 GMT
ablrate whilst I like that there is an update and it would appear a reasonable position, can I ask if this was known about earlier or is this really recent news?
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Post by ablrate on May 24, 2016 19:19:47 GMT
ablrate whilst I like that there is an update and it would appear a reasonable position, can I ask if this was known about earlier or is this really recent news? Hi We informed lenders as soon as we knew the situation. Regards Ablrate
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Post by meledor on May 24, 2016 19:49:09 GMT
Happy with the delay on this as the ATR 72 loan which recently matured and this loan accounted for over half of my total with Ablrate - so maybe more chance of another aircraft deal before this loan repays?
However I'm not totally sure I understand the story here. We know from the loan details that the Latin American airline requested an early termination. Presumably that termination has occurred because the plane is now in storage according to the email. Yet we are also told that the airline wanted to purchase the aircraft outright but its timescale for doing so does not align with our loan. But if you are leasing an aircraft and you want to buy it surely you keep it on lease until you have your finance sorted and then issue a termination notice?
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Post by ablrate on May 25, 2016 8:52:02 GMT
Happy with the delay on this as the ATR 72 loan which recently matured and this loan accounted for over half of my total with Ablrate - so maybe more chance of another aircraft deal before this loan repays?
However I'm not totally sure I understand the story here. We know from the loan details that the Latin American airline requested an early termination. Presumably that termination has occurred because the plane is now in storage according to the email. Yet we are also told that the airline wanted to purchase the aircraft outright but its timescale for doing so does not align with our loan. But if you are leasing an aircraft and you want to buy it surely you keep it on lease until you have your finance sorted and then issue a termination notice? Hi Meledor We are looking at a number of aircraft and aircraft related loans. We should also have an announcement in June that will make things clearer about our pipeline for aircraft (its all good), but we are unable to do so right now. The aircraft was coming back from the previous lessee on a set date and when aircraft come back off lease they need preparing for onward lease. The aircraft is owned by the Borrower (via the SPV and charged to our lenders) and was being sold to the lessee. Regards Ablrate
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Post by meledor on May 25, 2016 9:59:48 GMT
Good to hear that you still have a pipeline of aircraft deals and I look forward to further announcements.
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ptr120
Member of DD Central
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Post by ptr120 on May 25, 2016 16:53:34 GMT
Hi Ablrate should I have received an email about this? I have no bigger concern and I'm happy to be in this extended loan, just that I didn't receive an email which would have been prefrable to finding out about it on here. Either way, happy that you seem to be treating loan overruns in a more professional way than FC.
Looking forward to more aircraft loans in due course.
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Post by ablrate on May 25, 2016 17:17:00 GMT
Hi Ablrate should I have received an email about this? I have no bigger concern and I'm happy to be in this extended loan, just that I didn't receive an email which would have been prefrable to finding out about it on here. Either way, happy that you seem to be treating loan overruns in a more professional way than FC. Looking forward to more aircraft loans in due course. Hi ptr120 Please PM me your details and I will have a look and see if the mail has bounced or if there was an oversight on the list. Please accept my apologies either way. Regards Ablrate
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shimself
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Post by shimself on May 25, 2016 18:32:31 GMT
I emailed ABL HQ to ask for sight of the contract which applies re late payment, default interest etc, I'm still waitig for a reply >24hours later. If we had been given more notice then I would feel more sympathetic, but 5 days is taking the mick.
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ben
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Post by ben on May 25, 2016 19:07:52 GMT
Not in this one so not looked but with they type of asset I would have assumed that there would be an allowance for the loan to carry on for longer if needed without it being classed as default providing interest was paid.
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shimself
Member of DD Central
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Post by shimself on May 25, 2016 19:22:29 GMT
Not in this one so not looked but with they type of asset I would have assumed that there would be an allowance for the loan to carry on for longer if needed without it being classed as default providing interest was paid. For those people who were relying on getting the money back on time there is a genuine hurt. If that was in the contract we should have been told at the outset If the borrower can just extend the loan because they want to there needs to be a price to pay, a disincentive. Probably add 3% to the original rate (ie from 12 to 15%) I'm really not suggesting fire and brimstone, just a cost to be paid if you don't deliver on your end of the deal. I had a huge interminable fight here with AC about this issue where they spent a lot of time saying that to impose default interest would be to threaten the entire loan but actually they now seem to impose it far more readily.
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ben
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Post by ben on May 25, 2016 19:28:35 GMT
I think charging default interest on this will either a) make the loan go bad or b) make them unlikely to use albrate again in the future (most likely), if lending on an asset that someone is trying to sell then one of the risks is that they will be unable to sell it in time. Plus it sounds like you will be able to sell it on the secondary market again in the next few days
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james
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Post by james on May 25, 2016 19:28:59 GMT
I emailed ABL HQ to ask for sight of the contract which applies re late payment, default interest etc, I'm still waitig for a reply >24hours later. If we had been given more notice then I would feel more sympathetic, but 5 days is taking the mick. From the lender terms you have granted Ablrate permission to make these changes already: " 6.7 Where we believe that restructuring the loan would be in the interests of our Lending Members, you explicitly agree to Ablrate (acting as your agent) restructuring the loan and amending any contracts with the Borrower. We will notify you of our intentions to amend the loan agreements not less than 1 week before making such arrangements, but will seek to have agreement with all lenders before such an action, however, if a quorum cannot be reached Ablrate will have absolute discretion to act in what we believe is in the best interest of all Lenders.
6.8 You agree that Ablrate will be acting as agent on your behalf in;
(a) negotiating and agreeing any amendments to the Loan Contract; and
(b) entering into the amendment to the Key Contract Terms, in accordance with clause 6.6.
6.9 You hereby appoint Ablrate ( and any assigns for the duration of your membership of Ablrate) as your agent with full power and capacity to carry out those amendments without your specific agreement. You will then be bound by those changes. You agree and acknowledge that Ablrate shall take on no liabilities, obligations or rights under the Loan Contract as a result of such agency, and you agree that you will continue to be solely liable for and responsible for the rights and obligations under the Loan Contract (as amended)." At least, assuming that this is the version in effect at the time you entered into this loan agreement, it may have been an earlier version.
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james
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Post by james on May 25, 2016 19:34:54 GMT
For those people who were relying on getting the money back on time there is a genuine hurt. If you want your money back at the agreed date ask Ablrate to arrange it. In my experience they will try to accommodate the request. Most likely, though, you'll be able to sell on the secondary market so you might want to wait a bit and try that first. If that was in the contract we should have been told at the outset It's in the lender terms, current version. If the borrower can just extend the loan because they want to there needs to be a price to pay, a disincentive. Probably add 3% to the original rate (ie from 12 to 15%) For one year extensions there's a 4% increase, up to 7% increase if there's a three year increase. Or fixed rates, whichever is higher. None mentioned in the lender terms for periods of less than a year, though. a cost to be paid if you don't deliver on your end of the deal. I had a huge interminable fight here with AC about this issue where they spent a lot of time saying that to impose default interest would be to threaten the entire loan but actually they now seem to impose it far more readily. Depends on expectations at the outset, at least for things like the SavingStream property loans it's routinely expected that there may be delays in exiting and nobody (should) regard that as unusual.
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jfm
Member of DD Central
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Post by jfm on May 25, 2016 19:44:11 GMT
I think the repayment is showing on the dashboard "next instalment" on 29 May.  |
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