mark
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Post by mark on Jun 18, 2014 12:38:41 GMT
Hi, This loan is due for repayment on 20th June in line with the loan agreement. I see some units are for sale on the aftermarket. Has anyone any update or information regarding repayment that I may have missed ?
Hopefully its no news is good news and repayment will take place on Friday.
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andy2001
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Post by andy2001 on Jun 18, 2014 14:44:00 GMT
The question before yours in the Q&A says.
On 12th Jun 2014 at 22:25 Tonyu asked:
"Hopefully all is running smoothly for a full repayment of the loan on the 20th...?" ◦ On 13th Jun 2014 at 08:42 Assetz Capital answered:
"Thank you for your question.
Our last update at the end of May was that a valuation had just taken place by another lender who was looking to take our debt out. A further update to ensure all is progressing smoothly is expected today."
As far as I know that is the most recent comment by Assetz capital on this.
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mark
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Post by mark on Jun 18, 2014 15:41:34 GMT
Thanks for you Andy.
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mark
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Post by mark on Jun 19, 2014 15:34:31 GMT
I have just been advised that repayment of this loan will not happen tomorrow due to the lenders problems with refinancing. An explanation by way of a communication to investors should be published as a matter of urgency.
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oldgrumpy
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Post by oldgrumpy on Jun 19, 2014 15:45:46 GMT
I would expect the current rate of interest to continue for a while, then AC might make a refinance offer on new terms. I bet AC has a procedure written in to cover delays at the end of bridging loans..... (how often do I lose a bet??!...)
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Post by andrewholgate on Jun 19, 2014 15:49:20 GMT
All
We do have a set procedure in place to deal with this and we are working actively to sort this. I need to go into a meeting, but I have asked David Ricketts to be available for the next hour to take your questions here.
Andrew
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mark
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Post by mark on Jun 19, 2014 15:49:58 GMT
For the information of lenders, I have just received this email
Anglesey Bridging Loan Lender Update
We wish to update lenders on progress towards repayment of this loan (due 20 June 2014). As previously advised, the borrower and introducer have been working towards a refinance with Sh******k with a valuation undertaken at the beginning of June.
Whilst we understand that the refinance is progressing well, it has not yet been completed and as such, the loan will go into default on 21 June 2014 and default interest will become payable to lenders.
To cover this eventuality we have arranged for the borrower to place us in funds to cover this default interest for one further month so lenders can be sure of compensation for funds remaining tied up for a further period. We will of course continue to liaise closely with the introducer and the borrower to ensure refinance remains on track to complete within this additional period.
We retain a First Legal Charge over the property and the refurbishment work has been completed improving the valuation from when loan was originally drawn down.
If lenders have any questions they can of course contact us on the usual email address or telephone number.
Update better late than never I guess.
Mark
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Post by davidricketts1 on Jun 19, 2014 15:52:50 GMT
Hi all - David here. Will be on hand for the rest of this afternoon to answer questions, and will also be around tomorrow too if necessary. Slightly more detailed update to follow, but in the meantime, please do put any questions you might have up here and I'll do my best to answer them all personally.
Thanks,
David
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Post by Ton ⓉⓞⓃ on Jun 19, 2014 15:57:46 GMT
For the information of lenders, I have just received this email Anglesey Bridging Loan Lender Update We wish to update lenders on progress towards repayment of this loan (due 20 June 2014). As previously advised, the borrower and introducer have been working towards a refinance with ******** with a valuation undertaken at the beginning of June. <snip> We retain a First Legal Charge over the property and the refurbishment work has been completed improving the valuation from when loan was originally drawn down. If lenders have any questions they can of course contact us on the usual email address or telephone number. Update better late than never I guess. Mark Thanks for that update mark, I've not seen the email,
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mark
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Post by mark on Jun 19, 2014 16:08:59 GMT
Hi all - David here. Will be on hand for the rest of this afternoon to answer questions, and will also be around tomorrow too if necessary. Slightly more detailed update to follow, but in the meantime, please do put any questions you might have up here and I'll do my best to answer them all personally. Thanks, David Hi David, thanks for making yourself available. Thanks for the email. There has been no prior notification of any problem with this loan until your email today, less than 24 hours before repayment was due. I was in the process of recycling the loan funds and this could have caused unnecessary problems. AC was obviously aware of this issue a while ago and I would have expected investors would have been kept informed or notified at an earlier stage. I am sure you have a procedure to follow to resolve this matter and I am relaxed at the moment but I do not like surprises like this and could have easily been avoided by better communication. Mark
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Post by whitmanthecat on Jun 19, 2014 16:13:21 GMT
... repayment of this loan will not happen tomorrow due to the lenders problems with refinancing. ... These two quotes have a slightly different viewpoint. Other than the fact the refinancing is not ready yet, are there actual issues with the refinancing? Given the delays in getting loans into AC, it doesn't surprise me of delays in another lender taking the loan away. If it is just a delay, I'm not too worried, I'll sit back and enjoy the higher interest rate. I presume this is 1.5% per month? I also presume that while the lender is depositing a whole month of default interest, they would only be liable for interest on the period (if less than a month) up to the loan being repaid?
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Post by davidricketts1 on Jun 19, 2014 16:14:29 GMT
Hi all - firstly, please accept our apologies for not updating lenders sooner on this loan.
You'll have seen the email that was sent out to lenders (and kindly reposted by Mark), so I won't go through the detail, but the upshot is that the borrower hasn't refinanced in time. It's a technical default, but it's important to note that we still have every expectation of recovering all lender funds.
When we first issued the loan, we prepared for this eventuality. As a result, the borrower must now pay a higher rate of interest to compensate (1.5% per month, up from 1%). Naturally, this is entirely payable to you, the lenders.
We're speaking to the borrower as I write in order to get this all firmed up, but this is when having a team that includes experienced lenders, accountants and insolvency practitioners pays off.
We'll keep you updated, and do keep the questions coming. Mark, I'm looking into the delay, so watch this space.
Thanks,
David
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Post by Come_on_Grandad on Jun 19, 2014 16:15:16 GMT
Thanks for the update davidricketts1, but in it you don't say what is the rate of default interest. Neither does the credit report. Is there some general rule that we should assume? Or could you please always be specific. |
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oldgrumpy
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Post by oldgrumpy on Jun 19, 2014 16:19:30 GMT
Thanks for the update davidricketts1, but in it you don't say what is the rate of default interest. Neither does the credit report. Is there some general rule that we should assume? Or could you please always be specific. Yes he does. 1.5% per month.
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Post by Ton ⓉⓞⓃ on Jun 19, 2014 16:23:07 GMT
Thanks for the update davidricketts1, any idea when it will be paid off? Do we really get default interest for a whole month tho' they maybe just a day or two late? Assuming it is only a day... |
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