Roundtable Discussion; The Future of Mineral Sands. Watch the video here.
I have not seen the Guarantor contact so but when I was a lender a few years ago now,the guarantors contract was different from the borrowers contract one gets the money the other guarantees they step in if things get difficult.That might mean a call to the guarantor to put pressure on the borrower but if all else fails to repay if the guarantor can’t.If a barrister could argue these are completely 2 different contracts and win all of the provisions can be released.Or most of them.
Sorry I know this is basic stuff I’m asking and it’s surely been covered by lots of people both in and out the company.However I’m assuming the reason for the provisions is that if a customer was lent money and they couldn’t afford it it was irresponsible lending so a court would kick out a lender for trying to pursue the debt and so they don’t bother and it’s written off.But that’s the borrower not the guarantor isn’t the contract a guarantor have completely different, that contract is nothing to do with the loan as they don’t get the money,it’s to guarantee the loan is repaid.
I’m sure this will have been looked into by someone but in essence if a customer is lent money and they argue they couldn’t afford a loan the the courts are saying you don’t have to repay the loan or the interest .However the wording on the guarantor loan must be different doesn’t it say that if the loan isn’t repaid for any reason they have to step in and pay.If it doesn’t it should and if it does Amigo or any lender could go after the guarantors regardless of the courts decision on the first named customer.Cant Amigo go after all of the guarantors for all these loans that have not been repaid for what ever reason.I know it’s not that simple but it may be !
I have a nasty feeling Ive been “HAD” If I built a business that I believed in and it ran through my DNA I had 100s Millions in the bank and could buy it for £50M nothing would stop me.However JB isn’t fighting very hard to get it.He seems to have lost interest since he sold his shares.However if I was selling my shares and wanted the best price possible I would offer let’s say 20p a share for them if I was voted in as CEO a possible but improbable possibility.The minions you and I would get excited and push the share price up towards 20p whilst JB merrily sold his holdings off.The Directors have got approval for everyone to bail out of the shares rather than tying everyone in until the job is done.This is a fixable problem get rid of the non believers on the board and turn this company around.I remember there are some people that tell you in great detail why something can’t be done and they normally are great at reports graphs and presenting ! Then there are people who just get it done ! I hope we have enough people on the board who can do more than talk about things.I think JB was one of this people but Possibly he has lost belief in his own abilities....Shame !
I watch some of the comments and I swing between JB and BOD then back again.I believe Uk is second largest credit market on the planet.In the US the 50 states all have different rules on consumer credit and collections.As does Europe.Australia is Similar to UK.The point I’m trying to make is you have to get it right here in UK before anyone goes off and attempt to get warehouse facilities to lend in places it’s difficult to collect.
I have not followed the share or JB for 10 years....I was aware of both Amigo and JB 10 years ago and had a huge amount of respect for both.The model is genius sub prime rates with prime bad debt.Other then these threads I havnt really followed what’s been happening.I invested a little last week.I was interested in JB approach but he didn’t look to have a plan B ! At the moment it looks as if he is trying to generate a bit of a frenzy to get out of his shares at the best price possible.I hope his 100s of millions havnt clouded his judgement of what the huge opportunity Amigo is.
He should buy It on his own or with a VC quickly or the board will make it impossible as this share in my opinion is vastly undervalued.This company is going to do well as people will need them more than ever before over the next few years.JB has to make his move in a few days or the opportunity will have gone for him.However that makes no difference to the upside.It would Just be quicker with JB !
I guess The results will determined by the provisions policy and if it’s been changed in any way.Some companies take large provisions for 30 day contractual arrears knowing it is a precursor for eventual write off.With Covid this rule may change so the profits Could be what the board wants To show to suit their agenda.Too low and they will be kicked out ! These should be good results !
If Glen was not going to support JB all along.Then JB isn’t stupid he would have known so the only conclusion could be that the excitement was purely to increase the value of the SP whilst JB unloads.Im new to AMIGO but have ran finance companies and completed securitisations and understand this company should be very profitable with or without JB.
If I spoke to a member of a board who said.I will support you if you show your hand.Then he turns his back on me.I would never trust him again.So if JB gets back the first person he should walk off the premises is this GLEN.Good operators are easily found Billionaire Visionaries are rare.JB built a team around him to start with so he knows what talent is.This is a large board for a small finance company.Sir John Harvey Jones said you should always have an odd number of Directors and three is too many.
It looks like some of some very informed people are sending each other messages.I would just like to mention if Amigo ever went into Administration there would be more than one interested party in taking it on ! So I believe JB will not gamble in that way ! I believe the UK is the second largest Credit market in the world so whilst international lending is a possibility the opportunity remains to do it properly in The UK.Guarantor lending at 49.9% APR with a book that probably performs similar to prime lending because of the guarantors is probably the most profitable form of lending.If I was JB I would try and own it myself.I might talk to a couple of VC friends about the opportunity ! Its cheap as Chips ! Best opportunity I have seen in a long time.