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Post by Collateral Rep on Jun 15, 2017 13:55:25 GMT
Afternoon,
The delays have been because the borrower is a Gibraltar based company and their accounts were outstanding for 2015 and the Company’s Annual Return was outstanding for 2016. These issues should have been picked up prior to our legal team's involvement and if they had we wouldn’t have experienced these delays. These legal documents had to be completed and published at Companies House before a Certificate of Good Standing is issue by Companies House. We now have the Certificate of Good Standing and the Gibraltar based lawyer has completed the searches at the Supreme Court in Gibraltar this morning. We should therefore complete tomorrow at the latest.
As we have said before, our legal team are very thorough and diligent and we would rather delay completion until they advise us that they are fully satisfied to do so.
We will be visiting the site later today to check on progress before listing the development finance loans tomorrow with a 14% return.
All Cash Back will be paid the day after draw down.
Many thanks,
Gordon
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Post by lendinglawyer on Jun 15, 2017 14:19:20 GMT
Afternoon, The delays have been because the borrower is a Gibraltar based company and their accounts were outstanding for 2015 and the Company’s Annual Return was outstanding for 2016. These issues should have been picked up prior to our legal team's involvement and if they had we wouldn’t have experienced these delays. These legal documents had to be completed and published at Companies House before a Certificate of Good Standing is issue by Companies House. We now have the Certificate of Good Standing and the Gibraltar based lawyer has completed the searches at the Supreme Court in Gibraltar this morning. We should therefore complete tomorrow at the latest. As we have said before, our legal team are very thorough and diligent and we would rather delay completion until they advise us that they are full satisfied to do so. We will be visiting the site later today to check on progress before listing the development finance loans tomorrow with a 14% return. All Cash Back will be paid the day after draw down. Many thanks, Gordon Presumably you will be monitoring their ongoing compliance and kicking them to keep things in order to ensure that if and when they come to exit the same problem does not delay any sale/refinancing? The annual return is no doubt minor and an entirely technical issue, but the 2015 accounts not having been filed yet is not great, even if I bet Gib is not the most aggressive CoHo in following up this kind of thing...
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Post by Collateral Rep on Jun 15, 2017 15:37:28 GMT
Hi lendinglawyer, We will keep on top of the development to ensure our lenders are legally covered at all times. To be clear, we did expect that as there was an existing facility in place which our lenders were stepping into, it would have been a relatively seamless legal exercise but our legal advisors found that this was not the case, and this has caused unnecessary delays which would not have happened had everything been legally watertight previously. Many thanks, Gordon
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micky
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Post by micky on Jun 15, 2017 15:39:14 GMT
Could this be a concern for lenders on the previous platform?
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micky
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Post by micky on Jun 15, 2017 16:51:24 GMT
I agree with the 'No' regarding repayment as it seems that the COL Legal team have dotted the I's and crossed the Ts. My point, however, was that the DD completed on the previous platform could be called into question! ......'The annual return is no doubt minor and an entirely technical issue, but the 2015 accounts not having been filed yet'
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metoo
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Post by metoo on Jun 15, 2017 18:59:44 GMT
We will be visiting the site later today to check on progress before listing the development finance loans tomorrow with a 14% return. Collateral Rep Perhaps photographs were taken on site that could be shared with lenders in the next listing to show the progress?
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Post by elephantrosie on Jun 15, 2017 20:16:04 GMT
No worries, col. do it slowly, but be thorough. i want quality, not quantity.
thanks!
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stevio
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Post by stevio on Jun 15, 2017 20:48:16 GMT
collateral if the new tranches are 14%, how do they work with the original 12% ones? Do they rank equally?
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Post by Collateral Rep on Jun 16, 2017 6:07:47 GMT
Hi metoo, Yes we have new photo's taken yesterday evening which will be added to the new development loan listing. stevio, all loan parts will rank equally. Many thanks, Gordon
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fp
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Post by fp on Jun 16, 2017 6:46:24 GMT
Hi metoo , Yes we have new photo's taken yesterday evening which will be added to the new development loan listing. stevio , all loan parts will rank equally.Many thanks, Gordon Hi Gordon, Do you not foresee any problems/issues doing it this way? One loan pays 12% but ranks equally to one which is paying 14%, anyone who has purchased the original loan on the secondary market will be getting a rough deal from this. I'm not looking to start a debate, more a case of asking what a lot of others will be thinking. Personally I bought into the original loan with the intention of keeping it, and it is likely I will buy in to the development tranches also.
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elliotn
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Post by elliotn on Jun 16, 2017 8:05:48 GMT
Lots of repayments today - I'm in on the development tranches.
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withnell
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Post by withnell on Jun 16, 2017 8:54:33 GMT
Offering a higher rate for a later issued tranche without adjusting for the existing investors is a dangerous game - the platform already had to offer cashback incentives in order to fill the initial loan, and this would make me think more carefully about investing in a new loan vs waiting for the dev tranches
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Post by Collateral Rep on Jun 16, 2017 9:57:31 GMT
Morning,
Just following the thread and thought we should comment.
We have always tried to look after our investors listening and adding improvements where possible. This loan was no different, we put a quality loan on initially with no incentives but realised early that it might take a while to fill. A few investors contacted us and suggested a cash back incentive to help it along which we looked into and applied to the loan. We mentioned on a thread on the 19th of May that the further tranches would possibly be offered at a higher interest rate to also help them along.
We have always been transparent and open with our investors and on future loans with additional development tranches, if incentives are required we will take suggestions on board.
We're sorry some investors are upset with the structure of these loans but it was done with the best intentions.
Again thanks to all our investors for their valued support.
Gordon
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withnell
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Post by withnell on Jun 16, 2017 10:24:04 GMT
Morning, Just following the thread and thought we should comment. We have always tried to look after our investors listening and adding improvements where possible. This loan was no different, we put a quality loan on initially with no incentives but realised early that it might take a while to fill. A few investors contacted us and suggested a cash back incentive to help it along which we looked into and applied to the loan. We mentioned on a thread on the 19th of May that the further tranches would possibly be offered at a higher interest rate to also help them along. We have always been transparent and open with our investors and on future loans with additional development tranches, if incentives are required we will take suggestions on board. We're sorry some investors are upset with the structure of these loans but it was done with the best intentions. Again thanks to all our investors for their valued support. Gordon Thanks for the response Gordon While I appreciate that the higher rate for Dev tranches has been mentioned on this forum, this wasn't until after the loan had filled. A cashback incentive helps fill a tranche and I am very much supportive of them, but differing interest rates for the same risk means that existing investors lose out I along with other investors invested in this loan on the full understanding that it is a development loan with further tranches - by offering a higher rate to later investors you distort the secondary market, effectively creating a lower tranche effect on the original investors. I would strongly encourage you to offer the incentive to fill this loan as some form of cashback in order to not distort future secondary market trading and maintain confidence in primary market initial tranche investment. Obviously cashback vs interest rate has a cashflow impact, so maybe you could offer cashback payable upon final repayment of the loan at end of term, and not transferable to future purchasors to keep the SM fair
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hazellend
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Post by hazellend on Jun 16, 2017 11:45:30 GMT
Won't this make the first tranche completely illiquid as people will only buy the higher rated tranches?
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