macq
Member of DD Central
Posts: 1,924
Likes: 1,192
|
Post by macq on Apr 20, 2017 17:10:27 GMT
thanks for laughing & reply (and i still have 3 balls & 2 strikes left)
|
|
elliotn
Member of DD Central
Posts: 3,063
Likes: 2,681
|
Post by elliotn on Apr 21, 2017 0:46:17 GMT
thanks for laughing & reply (and i still have 3 balls & 2 strikes left) You certainly have balls.
|
|
macq
Member of DD Central
Posts: 1,924
Likes: 1,192
|
Post by macq on Apr 21, 2017 7:05:51 GMT
figuratively speaking they are required for P2P
|
|
blender
Member of DD Central
Posts: 5,719
Likes: 4,272
|
Post by blender on Apr 21, 2017 14:17:54 GMT
does it count as another question to ask for the answers? As you are new... strike one.... (but actually very funny, so OK..lol) I have put the questions to the borrower and I am awaiting the answers. Best Ablrate I would not be betting on a reply before Monday. No incentive.
|
|
|
Post by ablrate on Apr 21, 2017 15:16:54 GMT
Oh yee of little faith blender: "The exact inter-creditor agreement is being prepared on the basis of legal advice and designed to provide senior debt security rights for the first charge holder. The holders of the 2nd charge will rank completely behind the 1st charge, hence why the deal is amortising to provide greater security. The borrower's purchase of the existing business/leases is an arms length transaction with a third party. Lenders are reminded that BNG has evidenced considerable success in the sector having already assembled a profitable portfolio of licensed trade / restaurant assets and created and rolled out a themed/multi-themed concept bar brand across five major UK city locations. In a separate enterprise, the Senior Director previously assembled and sold a portfolio of c. 60 public houses to a major plc for a consideration of £20m+. These two factors bring material credibility to the financial forecasts and hence the borrower’s ability to meet the combined debt service costs. As a contingency, lenders also avail of direct and uncapped recourse to corporate and / or personal guarantors of material financial means (relative to the combined loan amounts). The LTV is appropriate in consideration of the valuation only and in doing so, attributes no valuation (for LTV purposes) to the corporate and / or personal guarantees. In light of the company’s track record, management’s track record and a security position comprising a first/second legal charge plus makeweight security (of value); the opportunity reflects a secured /mezzanine risk profile and is priced accordingly." (ABL: and better than elsewhere in the P2P world for the same company...... )
|
|
elliotn
Member of DD Central
Posts: 3,063
Likes: 2,681
|
Post by elliotn on Apr 21, 2017 15:39:07 GMT
Tvm Will there be any values attributed to the business/lease purchase?
|
|
blender
Member of DD Central
Posts: 5,719
Likes: 4,272
|
Post by blender on Apr 21, 2017 16:23:01 GMT
Tvm Will there be any values attributed to the business/lease purchase? I guess that information has been declined. I have no problem with BNG. Agreed I don't do faith.
|
|
|
Post by epicurean on Apr 22, 2017 13:46:37 GMT
Certainly appreciate the response Ablrate although a little surprised that it appears to have come directly from the borrower.
The more I think about this the more questions I have. I don't expect you to answer the below but have listed for others to consider (and prove me wrong if the case!)
- The intercreditor governs the relationship between senior and junior lender and should have nothing to do with the borrower. I would expect Ablrate to be negotiating this. - To give an example on the conflict of interest point, if the junior payments are defaulted but senior payments aren't the junior lenders may be inclined to try to force a default or otherwise seek to frustrate the borrower. This is highly unlikely to be in the interest of senior lenders who own a performing loan. It will be for Ablrate to manage this. Conventional practice is to have a Chinese wall with different individuals at the firm representing senior and junior interests in negotiations. This is probably overkill for P2P but there ought to be some process for managing this. - I assume Ablrate are instructing the lawyers to protect the position of lenders (certainly for taking security). The lawyers duty of care and professional indemnity cover will only apply to the person/entity that instructed them. - I'm still confused by the valuation. It's presented as a property valuation but appears to actually be a valuation of the operating business. On the property elements, there is no value in a 15 year lease but there may be some value in the part-freehold (i.e. if the business stopped performing the only value remaining is the part-freehold). This opens a whole new set of questions about the interplay between freehold/leasehold at the site which I'd expect to be covered in a report on title. - I don't think anyone doubts BNG's competence but that only provides a certain level of comfort. Name-based lending rarely ends well.
This was interesting to review in any case. I sense this is a more complicated opportunity than most so hopefully the next is better.
|
|
markdirac
Member of DD Central
Posts: 128
Likes: 51
|
Post by markdirac on Apr 24, 2017 15:32:33 GMT
Very puzzling. Why are we not being told the value of the (freehold and leasehold) land & buildings? (I avoid the ambiguous word "property".) This is an obvious question which has been asked several times here, and also on the ablerate web site. Each time, the answer amounts to "Startermode is a thriving business". There's no way anyone would buy this business without a surveyor or estate agent valuing the associated buildings - the answer must be known.
Why can we not be told the value of the buildings please?
|
|
SteveT
Member of DD Central
Posts: 6,873
Likes: 7,918
|
Post by SteveT on Apr 26, 2017 10:25:46 GMT
1st charge loan is now well beyond its £350k minimum, up to £385k and rising. I suspect funds that missed out on the Generators loan probably found their way into it. ablrate, have you decided a firm date for closure / activation ?
|
|
|
Post by ablrate on Apr 26, 2017 11:00:59 GMT
1st charge loan is now well beyond its £350k minimum, up to £385k and rising. I suspect funds that missed out on the Generators loan probably found their way into it. ablrate , have you decided a firm date for closure / activation ? Just speaking with the borrower and will let you know and send a mail. Regards Ablrate
|
|
ben
Posts: 2,020
Likes: 589
|
Post by ben on May 3, 2017 13:28:52 GMT
1st charge loan is now well beyond its £350k minimum, up to £385k and rising. I suspect funds that missed out on the Generators loan probably found their way into it. ablrate , have you decided a firm date for closure / activation ? Just speaking with the borrower and will let you know and send a mail. Regards Ablrate Any update on this?
|
|
n
Member of DD Central
Yet another Nick
Posts: 879
Likes: 461
|
Post by n on May 3, 2017 13:39:27 GMT
Just speaking with the borrower and will let you know and send a mail. Regards Ablrate Any update on this? I would have thought that with only 40K to go they would leave it to fill. Money to come from MTAH531/DFL024 'imminently' might come this way unless Ed gets his timing just right.
|
|
blender
Member of DD Central
Posts: 5,719
Likes: 4,272
|
Post by blender on May 3, 2017 14:07:26 GMT
Costing Ablrate £270 a day in instant returns. So Ablrate probably keen to close, and we 'junior' lenders are watching our security decrease, such as it is.
|
|
SteveT
Member of DD Central
Posts: 6,873
Likes: 7,918
|
Post by SteveT on May 6, 2017 6:05:27 GMT
Just £5k left now on the 12% first charge loan. ablrate, when do you expect these 2 loan to draw down? Also the generators loan?
|
|