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The Masked Tulip

Creditors Left High And Dry By Tycoon’S £6M Debts

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I can't find the other threads on this matter via the Search function.

Basically, as many of you will recall, RBS called the loans in on a Swansea property developer a couple of months ago by devaluing the commercial property that they had loaned him money on.

Anyhow, the developer had a credit meeting yesterday with the various people he owes money to but - I am surprised - RBS excluded themselves from the IVA.

I find this staggering as they downgraded the property thereby calling in the loans thereby resulting in the developer being forced into an IVA... but now they are going to exclude themselves from, I assume, wanting any money back from him? Isn't that odd?

Is this normal practice - after all, surely any money owed to RBS is owed to the tax-payer now?

At least by excluding themselves they give the chap a chance to pay back something to the various local firms that he is owed money to and, to his credit, he is trying to do this.

Anyhow, you commercial property whizz-kids have a read and let me know what is going on here.

http://www.thisissouthwales.co.uk/news/Creditors-left-high-dry-tycoon-8217-s-163-6m-debts/article-2727251-detail/article.html

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I can't find the other threads on this matter via the Search function.

Basically, as many of you will recall, RBS called the loans in on a Swansea property developer a couple of months ago by devaluing the commercial property that they had loaned him money on.

Anyhow, the developer had a credit meeting yesterday with the various people he owes money to but - I am surprised - RBS excluded themselves from the IVA.

I find this staggering as they downgraded the property thereby calling in the loans thereby resulting in the developer being forced into an IVA... but now they are going to exclude themselves from, I assume, wanting any money back from him? Isn't that odd?

Is this normal practice - after all, surely any money owed to RBS is owed to the tax-payer now?

At least by excluding themselves they give the chap a chance to pay back something to the various local firms that he is owed money to and, to his credit, he is trying to do this.

Anyhow, you commercial property whizz-kids have a read and let me know what is going on here.

http://www.thisissouthwales.co.uk/news/Creditors-left-high-dry-tycoon-8217-s-163-6m-debts/article-2727251-detail/article.html

Is it one of those arrangements that by excluding themselves the debt owed is still outstanding, and so they will attempt to get more than the 1p in the pund going forward?

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Presumably they can take some sort of legal action to get their hands on assets?

I think an IVA freezes everything financially for him so he can't move/hide stuff.

Edited by SarahBell

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Ah, so excluding themselves might not be a 'charitable' action then?

I thought that if the creditors didnt agree to an IVA, it has no force.

you cant force a creditor to accept and arrangement whereby a debtor gets away with it.

or maybe you can.

EDIT, it appears you can...for a CVA or IVA to be agreed, the vote amongst creditors must exceed 75%.. the agreement is then binding on all parties regardless of how they voted.

its not clear, from what Ive read, what 75% means....75% in terms of value or the number of creditors.

Edited by Bloo Loo

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I can't find the other threads on this matter via the Search function.

Here is one of the threads TMT. For reference I used Google Advanced Search, with the term RBS, The Masked Tulip, and searching the domain: http://www.housepricecrash.co.uk/forum . Only 1.34p in the pound for creditors even after RBS has excluded themselves from £26 million? It bugs me how so many of these big borrowing investors, when their portfolios crash leaving them owing millions, believe the banks should keep funding them and keep them in charge. You're out the door mate.

CREDITORS of the troubled Swansea property baron Roy Thomas will receive 1.34p back for every pound they are owed. The fallen property tycoon said he was stunned when he was first told about the devaluation of his properties. He said: “I could hardly speak for an hour or so.”

He said: “They were long term investments.” A solicitor representing three of the creditors spoke at yesterday’s meeting and told Mr Thomas: “If the bank hadn’t pulled the plug, in theory you could have battled on.”

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I thought that if the creditors didnt agree to an IVA, it has no force.

you cant force a creditor to accept and arrangement whereby a debtor gets away with it.

or maybe you can.

EDIT, it appears you can...for a CVA or IVA to be agreed, the vote amongst creditors must exceed 75%.. the agreement is then binding on all parties regardless of how they voted.

its not clear, from what Ive read, what 75% means....75% in terms of value or the number of creditors.

It's of value.

I would guess that when RBS say that they are excluding themselves from the IVA that they are also taking the assets that secure their loans out of the pot as well.

They are taking a gamble that the value of these assets will rise in the future and are prepared to wait.

The means that the other creditors can't get a payout based upon the current value of these assets, but OTOH means that the RBS can't effectively veto the IVA (which is presumably what would happen if they were included).

But that's only a guess.

tim

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It's of value.

I would guess that when RBS say that they are excluding themselves from the IVA that they are also taking the assets that secure their loans out of the pot as well.

They are taking a gamble that the value of these assets will rise in the future and are prepared to wait.

The means that the other creditors can't get a payout based upon the current value of these assets, but OTOH means that the RBS can't effectively veto the IVA (which is presumably what would happen if they were included).

But that's only a guess.

tim

thanks for that...I guess, as secured creditors, they are just not interested in negotiating and have possessed the security....I would think they would be obliged to realise those assets ASAP to be fair to the debtor and the other creditors as they are are required by law to do, .

It just makes one wonder how a property Company can earn to pay the IVA when the source for income is withdrawn...ie the rents....or maybe the Bank is utilising the Law of Property Act 1926 ( about) and collecting the rents themselves.

either way, this debtor is a basket case.

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Here is one of the threads TMT. For reference I used Google Advanced Search, with the term RBS, The Masked Tulip, and searching the domain: http://www.housepricecrash.co.uk/forum . Only 1.34p in the pound for creditors even after RBS has excluded themselves from £26 million? It bugs me how so many of these big borrowing investors, when their portfolios crash leaving them owing millions, believe the banks should keep funding them and keep them in charge. You're out the door mate.

CREDITORS of the troubled Swansea property baron Roy Thomas will receive 1.34p back for every pound they are owed. The fallen property tycoon said he was stunned when he was first told about the devaluation of his properties. He said: "I could hardly speak for an hour or so."

yeah, he could have battled on, till there was 0p in the pound payout.

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Here is one of the threads TMT. For reference I used Google Advanced Search, with the term RBS, The Masked Tulip, and searching the domain: http://www.housepricecrash.co.uk/forum . Only 1.34p in the pound for creditors even after RBS has excluded themselves from £26 million? It bugs me how so many of these big borrowing investors, when their portfolios crash leaving them owing millions, believe the banks should keep funding them and keep them in charge. You're out the door mate.

CREDITORS of the troubled Swansea property baron Roy Thomas will receive 1.34p back for every pound they are owed. The fallen property tycoon said he was stunned when he was first told about the devaluation of his properties. He said: “I could hardly speak for an hour or so.”

Thanks for this - numpty me I should use google to search this site in future. Thanks again.

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  • 140 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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