Inland Zdp Discussion Threads

[my retirement fund] 01/2/2023 13:37

So they are saying they are still in breach of 49M of covenants but hope to resolve that and continue as a going concern, they admit they cant repay the ZDP in 2024 unless they could borrow more money to repay them (LOL ! ), and by the way who knows maybe we can find some spare cash to buy them back at a discounts anyway - oh and by the by the way, we don't agree with out auditors.

hmmmm sounds like a real trustworthy bunch them, no ?

[cc2014] 27/1/2023 12:10

The issue is the security which is not the whole of INL but broadly Cheshunt Lakeside Developments, a company who's latest accounts show an auditors statement regarding material uncertainty related to going concern (which is explained) and an accumulated loss of £6.5m as at Sept 21.

Only CLDL have other loans from Paragon Bank. I will leave you work out whether Paragon or the ZDPs have preference over who comes first although it's pretty clear to me and I think you can guess without doing the research.

So, yes there is some security, so you will have to work out it's worth and how easy it will be to crystallise and how long that will take

I'm not a buyer...

[redhill9] 26/1/2023 13:02

There are no prior charges to any other Inland Group creditors in relation to the pledged assets or pledged cash. /

FWIW, my interpretation concurs with Arthur_Lame_Stocks and bsdjj. Quite possibly I'm wrong.

For anyone interested, the GRY this morning is 48% so the market seems to agree with the "toasters", who may or may not have done in depth research of INLZ.

[my retirement fund] 26/1/2023 12:59

You'd see the terms senior secured - it doesn't feature! In any case, the clue is in the interest rates. Do you seriously think the banks would lend at a lower rate than the zeros? Jeez! Common sense !! I mean really! REALLY !!!

[arthur_lame_stocks] 26/1/2023 12:41

I'm sorry cc2014 but you're wrong. The zdp's have a first legal charge over the pledged assets, not the banks.

[cc2014] 26/1/2023 12:27

Well I'll try.

The pledged cash and pledged assets are the assets left over after all the other charges on the assets, which will be from the bank.

The pledged cash is the cash in the bank account. How much is going to be in there when the company is £100m in debt? Well basically nothing.

The pledged assets are all that's left over after the bank has been taken care of.


Right now INL has breached some of it's banking covenants and given the dire losses and complete inepitude the bank will want it's money and won't hang around.

INL will be forced into selling at the speed the bank wants so that the bank gets its money back. It won't care about the price the assets are sold at as long as it gets it money and it won't give two seconds thought as to whether the ZDP holders get their money.


Despite the lovely phrases pledged cash and pledged assets the ZDP holders are at the bottom of the queue in relation to getting their money back. Well the ord shareholders are at the bottom of the queue.

[bsdjj] 26/1/2023 11:58

"Other than in respect of the Pledged Cash and Pledged Assets" is the key phrase.Not quite sure what your point is?

[my retirement fund] 26/1/2023 11:33

I am not sure where this ring fenced none-sense comes from? Correct me if I am wrong. The zeros, which have been re-issues and rolled over are the result of establishing a separate lending company (ZDPco), whos terms were laid out in the initial prospectus for the formation of ZDPco in 2012 and it makes it clear it effectively subordinated as it states:

ZDPCo will rank behind any first ranking secured creditors of Inland other than in respect of the Pledged Cash and Pledged Assets. Inland’s obligations under the Contribution Agreement will effectively be subordinated behind the Loan Facilities in respect of other assets in Inland or held by its subsidiaries. Inland may not be able to ensure that ZDPCo has sufficient assets on the ZDP Final Payment Date to satisfy the Final Capital Entitlement or on any earlier date when payment of their Capital Entitlement falls due. Therefore, there can be no certainty that the Capital Entitlement will be paid.

[skyship] 26/1/2023 10:51

Sad, but personally I would say if you can get a bid on your stock - take it!

[bsdjj] 26/1/2023 10:50

Not sure that is right My Retirement Fund. Maybe some has the covenants but I believe that the zeros are covered by a pool of ringfenced assets to the value of 120% of the liability due to the zero holders and therefore the other creditors (banks) cannot stop the zeros from being repaid. Perhaps someone can confirm?

[arthur_lame_stocks] 26/1/2023 10:07

Could someone please correct me if I'm wrong but don't the zdp's have a first charge over sufficient of INL's assets as to make repayment highly likely?

[bsdjj] 26/1/2023 09:38

Zeros are very illiquid. Small panicky sellers wanting out at any price. You can look at it the other way round and say if the (more liquid) ords are worth 11p then what should the zeros be?

[cc2014] 26/1/2023 09:32

Completely done for. Massive yield now availalbe if anyone thinks it will survive.

Surprised the ords haven't gone off more.

[my retirement fund] 25/1/2023 09:30

Pavey Ark went very quiet here, didn't he ? Any comment ?

[cc2014] 25/1/2023 08:06

Another update. More losses.

[1917again] 18/1/2023 15:19

Thanks for heads up, sold the last few I had

[cc2014] 18/1/2023 15:04

Yeah. Burnt toast at that.

[cc2014] 13/10/2022 09:14

Agreed. I would guess anyone with a large holding that wants out can't get out due to liquidity anyway so why bother selling.

[my retirement fund] 12/10/2022 21:22

Surprised this has not fallen badly

[my retirement fund] 10/9/2022 20:44

You do Pavey, right now SREI is 1% of my portfolio. Its an old friend to me. It was once 10% of my portfolio post credit crunch from around 30p and I've often traded it aggressively over the years and always enoyed a good dividend between. If things do get as bad as I imagined then it will become a larger percentage again. I appreciate you see value here, perhaps it is fair value and won't fall further. One thing I do remember about INL around a decade or so now ago when the did a 10p share equity funding was the management seemed to be a right old bunch of sharks and that sort of thing always casts a very long shadow in my books.