Over £11m to finance BWML

Published: Monday, 07 January 2019

I AM NOT a financial expert, writes David Probett, but by following the link:

https://beta.companieshouse.gov.uk/company/04930453/filing-history

I came to the field documents for BWML. The entry on 21 December 2018, reference MR01 is quite interesting.

Charges totalling £11,249,118.50

On Page 14, of the 40 total pages, two ‘Charges’ are listed, totalling £11,249,118.50.

I conclude, therefore, that the amount loaned to finance the purchase of BWML was £11.25million. Its pay has seen some additional funds put in by the purchaser, this would be outside the scope of this particular document.

Well in excess

The interest rate on the loans is 10%pa—well in excess of current commercial lending rates.

The interest rate incorporates a ‘risk element’. This seems to indicate that the lenders are regarding this as a higher-risk investment.

Extracting enhanced amounts

It could also be a way of extracting enhanced amounts from the business up to a date in 2025.

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