Friday, January 18, 2008
Para-Gone as we predicted (Confused76 this deserves a big weekend laugh)
Paragon to cease new lending at end of February
Paragon Group has revealed it will have to cease new lending from February due to funding problems.In a statement to the London Stock Exchange, Paragon revealed its warehouse facility, which provides it with long-term funding, is unlikely to be renewed at the end of February. This means there will be very limited funding for new business beyond this date, other than for further advances on existing loans, although the lender will continue to complete existing mortgage offers until then.
Posted by jack c @ 06:34 PM (840 views)
7 thoughts on “Para-Gone as we predicted (Confused76 this deserves a big weekend laugh)”
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jack c says:
This is potentially a massive blow to the Buy to Let market
Paragon is expected to cease lending on February 28 because its warehouse loan facility is not being renewed. The warehouse loan facility, which funded new lending, failed to secure commercially acceptable terms for the extension of its term. But Paragon says assets already funded at that date will remain funded until they mature. At November 30, 2007 the group’s portfolio’s of assets outstanding amounted to £11.3bn. Paragon says for it to be in a position to repay its corporate debt it is proposing a fully underwritten rights issue to raise £287m, which it says should protect shareholder value. The lender put a statement out today to the Stock Exchange which says: “Funding under the warehouse facility for new advances is, however, expected to cease to be available on 28 February 2008 although in accordance with its terms, assets already funded at that date will remain funded to maturity. It has not been possible to agree commercially acceptable terms for any extension of the availability period for new advances under the warehouse facility.”
Paragon’s share price dropped from 81.5p to 75p, following this announcement.
trough2010 says:
No need to add ‘Confused76’ into the title. That just personalises the debate and – in my opinion – does not add to the factual interest that may lie in a news article. The fact that said member posts relentlessly does not necessarily add to his/her credibility. I have been a long-term member/reader of this site. All I can recall is that this contributor is ‘schadenfroh’ – lots of hahahhahahhahahahahahahahha – ending comments. Whilst I agree with many of his/her perspectives before the Schadenfreude comments are launched at the end there is no need to personalise this Newsblog by referring to noisy members – unless you feel the need to, of course.
daft boy says:
burn baby burn
Cheekie Charlie says:
trough2010 said
confused 76 responses are in proportion to the greed and incompitence and lies which will eventually drag us all down.
justwatching says:
Trough
I quite like confused’s laugh
Crashwatcher says:
Maybe they are just anticipating that there will be no BTL market after the 28th February – After all who is ging to speculate on a property when it is likely to drop in value 30% in the next 12 months?
confused76 says:
Ho ho ho