mary
Member of DD Central
Posts: 698 
Likes: 711
|
Post by mary on Sept 14, 2018 19:24:51 GMT
"Discussions with the borrower are ongoing. Disappointingly it is now considered unlikely that the refinance will be completed before the loan matures in just over two weeks’ time. We have therefore commenced negotiations with the borrower regarding the terms of a possible lump sum Loan reduction and extension." Two weeks on, no progress, that we know of. What we do know is that this Borrower is short of cash, given 1. the partial redirection of funds to the Sheds, 2. the many, many tranches to fund the Sheds, 3. the disclosure from Lendy that, due to tranches being filled too slowly the Sheds were behind schedule, and 4. the Borrower has (amazingly) secured a £2m line of credit from the Shed manufacturer to keep at it because they can’t pay said manufacturer. Where does Lendy think a magical lump sum is going to appear from? Given the completed state of the project I’m still hopeful that there will be (ultimately) no capital loss, but patience is wearing very thin, and I suspect that there will be no early resolution - just like many other outstanding DFL’s.
|
|
richox
Member of DD Central
Posts: 66
Likes: 120
|
Post by richox on Sept 23, 2018 23:26:35 GMT
You can't make us think everything's rosy in this garden with this kind of utter nonsense Lendy. There's no chance of a lump sum loan reduction and extension. You might as well talk to this borrower about buying lottery tickets. He's out of cash and can't refinance. No doubt the hired hands will keep on making the phone calls and sending the letters that the book tells them to send, and we'll get the now monthly updates that there is something looming on the horizon, while the clock ticks up towards 180 days. I'd love you to prove me wrong Lendy, but I've seen this too many times.
|
|
sl75
Posts: 2,092 
Likes: 1,245
|
Post by sl75 on Sept 24, 2018 6:55:44 GMT
Where does Lendy think a magical lump sum is going to appear from? "Wealth" investors?
|
|
jcb208
Member of DD Central
Posts: 838
Likes: 638
|
Post by jcb208 on Sept 25, 2018 13:10:20 GMT
One month extension granted so another 22 days left
|
|
|
|
Post by picanto on Sept 25, 2018 14:57:19 GMT
One month extension granted so another 22 days left This is good news but I have a couple of questions. 1) Is there any bonus interest to be paid for the loan being overdue for a week? 2) Does the accrued interest for the loan being overdue get paid at the end of the month?
|
|
TitoPuente
Member of DD Central
Posts: 624
Likes: 655
|
Post by TitoPuente on Sept 25, 2018 20:29:42 GMT
One month extension granted so another 22 days left This is good news but I have a couple of questions. 1) Is there any bonus interest to be paid for the loan being overdue for a week? 2) Does the accrued interest for the loan being overdue get paid at the end of the month? 1. No 2. So far this loan is not overdue or suspended so it pays interest at the end of each month.
|
|
|
|
Post by picanto on Sept 25, 2018 21:00:29 GMT
Should bonus interest not be paid though since the loan went overdue? The bonus interest was paid previously when the loan got partially repaid and extended about 6 months ago.
|
|
invester
P2P Blogger
Posts: 612
Likes: 618
|
Post by invester on Oct 17, 2018 16:45:25 GMT
Another loan goes bad.
I don't quite get it. Lendy use valuation reports using one methodology to facilitate the loan and subsequent tranches.... why does this deviate from other third party lenders?
It basically seems that we are stuck now, as the refinance option is closed. I think we can surmise that either the business is worth much less than projected, or the properties themselves are. Perhaps both.
I do wonder if these events are being deliberately manufactured, because the other exit strategy was sale, and the buyer offering say, 80% would see people snap their arm off.
|
|
|
|
Post by loftankerman on Oct 17, 2018 16:54:30 GMT
I surmise that this is being held hostage to stave off the day when the sheds go down the pan taking this with it, but what do I know?
|
|
TitoPuente
Member of DD Central
Posts: 624
Likes: 655
|
Post by TitoPuente on Oct 17, 2018 17:06:59 GMT
It is expected that the business valuation be higher than the empty property. In this case it is the opposite? It looks like the valuation ‘as is’ is now even lower than the third party business valuation? Otherwise the exit would be a sale.
|
|
hazellend
Member of DD Central
Posts: 2,363
Likes: 2,180
|
Post by hazellend on Oct 17, 2018 17:10:07 GMT
Nail in the coffin for the sheds regarding any further funding.
|
|
|
|
Post by harryvederci on Oct 17, 2018 17:25:07 GMT
It is expected that the business valuation be higher than the empty property. It this case it is the opposite? It looks like the valuation ‘as is’ is now even lower than the third party business valuation? Otherwise the exit would be a sale. £175,000 a year ground rent now payable since they sold the freehold!
|
|
invester
P2P Blogger
Posts: 612
Likes: 618
|
Post by invester on Oct 17, 2018 17:34:45 GMT
It seems very disappointing that having waiting so long for a re-finance, supposedly from several different parties that it falls down on something like this.
Why not just enforce the security here? Unlike the other loan I don't think this is terrible and could recoup the capital.
|
|
mary
Member of DD Central
Posts: 698
Likes: 711
|
Post by mary on Oct 17, 2018 17:51:13 GMT
Regretting re-investing the part repayment in more of this loan.
With this one ticking over to -1 days, all my remaining loans be are now overdue, average at -250 days.
Guess I’m going to have to increase my Lendy loss reserve again. Now close to wiping out all this years P2P interest from all my platforms! Fortunately, diversification of total investments is saving the day. RS is the only platform where I’m increasing P2P, but overall I’m still decreasing P2P as % of my assets.
Obviously no capital has (yet) been lost on Lendy.
|
|
Carter
Member of DD Central
Posts: 250
Likes: 549
|
Post by Carter on Oct 17, 2018 18:23:40 GMT
I'm struggling here a little, help me out.
Has the new finance stalled because the business numbers don't stack up to service the amount of debt required to satisfy the existing loan?
Given that the new finance provider is considering offering funds to optimise the business and improve long term value, do they consider that this is actually feasible? Or is this only known after the appointment of expensive consultants?
Does the value of the site itself still hold in terms of a sale and is this being considered by Lendy?
|
|
