Money&Co appear to be facing their first test - T** B****** C*
After being two weeks late with May's repayment. M&Co state that 'We are in active dialogue with the Company's advisers and we are aware that the Company is seeking to put in place a refinancing proposal'
Questions 1. What does expression 'the Company's advisers' infer? Have they already gone into administration or similar?
2. What might a 'refinancing proposal' look like?
Last Edit: Jun 12, 2015 17:49:13 GMT by Ton ⓉⓞⓃ: Business name removed by Mod
Have received an email from M&Co stating that the bailiffs have missed this months payment. That's after making up the previous missed payment (for May) and making June's payment on time. It appears this may become a long running saga, with a borrower that's on the edge.
As for refinancing, the bailiffs already clarified in the original Q&As that the reason they were seeking an M&Co loan was because they were unable to obtain bank finance. The route to bank finance would be establishing a payment record with the P2B lender, which isn't what's happening.
So the borrower now states they are "restructuring" the business. M&Co has accepted a plan under which payments will be missed in July and August and recommence in September, with two months being added to the term of the loan. There is no reference in the email to how this affects interest accrual, as simply having the same two payments made at the end of the loan would leave lenders short of two months interest. This is where the lack of published information on ongoing loans, such as payment schedules etc., is a downside. The fact that lenders get no vote on the proposal also means we can be left short of a truly meaningful explanation.
It's been a long saga, but M&C are now offering to buy back all outstanding capital on this loan - 21 day offer, failure to positively tell M&C that you wish to accept means that you won't get the offer.
At the end of the day we will have lost about 3 months of interest.
Overall, I think it is a fair offer.
Hopefully M&C have learnt how to recognize suspect borrowers. (3rd and subsequent repayments were all a problem)