What Secured Assets Back LCF Loans?
|What Secured Assets Back LCF Loans?|
|Independent Oil & Gas loan security|
When you look at the security that LCF have taken for this loan you might be surprised to see that it doesn't actually comprise any physical assets. The only security that is listed is the loans that LOG has made to Independent Oil & Gas in 2015 & 2016. These loans may only have the same face value as the money that LCF has lent to London Oil & Gas so it's very unclear how it can support the claim that the assets backing the loans are far in excess of the loan amounts.
It's also very concerning that the security in the charges is only loan agreements made in 2015 & 2016 to Independent Oil & Gas and no mention of any loans to Atlantic Petroleum. LCF lent additional money to both in 2017 & 2018 so when LCF grew from having £60 million of assets to £236 million and eventually lent £50 million to London Oil & Gas in 2018.
How is this £50 million loan secured if the charges only relate to loans made in 2015 and 2016?If Independent Oil & Gas goes bust then the only security that LCF has will disappear.
Another company that LCF loaned money to called Costa Property Holdings Ltd has the security as a contract to buy & sell land, described as "Contract by Inversiones 51855 SRL Dominican Republic for sale & purchase of plots of land called el Cupey".
|"Contract by Inversiones 51855 SRL Dominican Republic for sale & purchase of plots of land called el Cupey".|
Again it doesn't seem like the definition of "full asset backed security" that London Capital & Finance were claiming in their literature.