Glanbia Advance payment sheme

jaymla627

Arrived in the post this morning, anyone considering signing up needs to read paragraph 6 Accelerated reimbursement, the basic gist of it is glanbia have a clause put in that allows the society in the event of default in repayment, cancel your shares in the society at a price of up to €5 per society share up to the value of the Total Gap advance...
They have a number of different scenarios that triggers this and have it called ' a relevant event' these include * where your milk cheque doesn't cover Gap deduction amount, another clause which is ludicrous relates to insolvency and dealing with creditors if you can't pay your debts that have no realavance to them they also can take shares......
Was nice of Corbally in his shiny cover letter and all the possible questions asked and answered in their Q and A page that none of this was disclosed, it seems head management have really lost the run of themselves and farmer board members are like nodding puppets its crazy situation thats been left to unfold at glanbia

whelan2

No matter how bad things are there are other options than part taking in these schemes

mf240

Put in for 200 grand. And factory the cows.

I hear Spain is nice this time of year.

whelan2

mf240 wrote: »

Put in for 200 grand. And factory the cows.

I hear Spain is nice this time of year.

Live it up with siobhan and Jim over there

ganmo

jaymla627 wrote: »

Arrived in the post this morning, anyone considering signing up needs to read paragraph 6 Accelerated reimbursement, the basic gist of it is glanbia have a clause put in that allows the society in the event of default in repayment, cancel your shares in the society at a price of up to €5 per society share up to the value of the Total Gap advance...
They have a number of different scenarios that triggers this and have it called ' a relevant event' these include * where your milk cheque doesn't cover Gap deduction amount, another clause which is ludicrous relates to insolvency and dealing with creditors if you can't pay your debts that have no realavance to them they also can take shares......
Was nice of Corbally in his shiny cover letter and all the possible questions asked and answered in their Q and A page that none of this was disclosed, it seems head management have really lost the run of themselves and farmer board members are like nodding puppets its crazy situation thats been left to unfold at glanbia

so basically your shares and milk cheque are the security for the loan?

is the share value low?

OverRide

You'd want to be stone mad to sign up to it
I see aswell,interest is charged at 3% ABOVE AIB overdraft rate should you for whatever reason not have enough to pay it back on time
So not alone are they eye'ing up your shares
They're eye'ing up your shares and 10%+ more
Utter shower of gangsters

pedigree 6

Always read the small print.

jaymla627

OverRide wrote: »

You'd want to be stone mad to sign up to it
I see aswell,interest is charged at 3% ABOVE AIB overdraft rate should you for whatever reason not have enough to pay it back on time
So not alone are they eye'ing up your shares
They're eye'ing up your shares and 10%+ more
Utter shower of gangsters

Another Intresting line hints that they may transfer the debt to whichever finincial institutions front up the money for this scheme, you'd imagen the likes of agriland/farmers journal/IFA would be up in arms over this but instead their cheer-leading it backed by the minister for agriculture, you couldn't make it up at this stage

OverRide

The CoOp needs to buy the other 40% of GiiL

kevthegaff

Are Glanbia a bank?

OverRide

kevthegaff wrote: »

Are Glanbia a bank?

Yes

jaymla627

kevthegaff wrote: »

Are Glanbia a bank?

Their much worse, at least banks have to abide by regulations and are governed by the Central Bank although that didn't work out to well in the past, but Glanbia are turning into a corporate monster that has it sights set on eroding the co-ops share-holding in the plc by any means possible and as cheaply as possible....
I reckon their game plan is to keep milk price payed out for as low as possible and for as long as possible so as not to go over the 30 c/l payback period for the gap scheme then hey presto, they will hit farmers who sign up for this scheme with a massive bill in 2020 that will facilitate them taking back and canceling a heap of co-op shares

whelan2

Is there anyone actually taking part in these schemes?

Timmaay

whelan2 wrote: »

Is there anyone actually taking part in these schemes?

I'd say there will be people who are up against it forced into taking part, especially if they have not fixed any of their milk supply. As bad as this scheme is it's still better than living off merchant credit at 2% per month etc. I certainly wouldn't be touching it if I was stuck, 2bh if I ever get to a point that I'm that bad I'd rather get out of dairying.

jaymla627

whelan2 wrote: »

Is there anyone actually taking part in these schemes?

Article up on agriland saying milk flex scheme is a great success and over a 1000 suppliers looking to take part, with average loan seeked up at 75,000...
Lads really have to think between taking up a hefty loan in this form and availing of the other scheme your basically knocking 4-6 cent of your milk cheque heading into the future, will be a serious handicap on your business going forward

kevthegaff

You really are tied by the balls to keep milking longterm prosperously or non signing up to these schemez

kowtow

OverRide wrote: »

The CoOp needs to buy the other 40% of GiiL

I suspect that is what Glanbia may want them to do..

Although since they hocked the PLC shares (IIRC) as convertible security for the bond issue to cover this loan scheme, I'm not sure what they are thinking of buying it with?

Is there an overall time limit on the loan scheme and where would the drop dead date be in relation to the option to purchase (or whatever the agreement was) on the other 40% of GIIL?

whelan2

jaymla627 wrote: »

Another Intresting line hints that they may transfer the debt to whichever finincial institutions front up the money for this scheme, you'd imagen the likes of agriland/farmers journal/IFA would be up in arms over this but instead their cheer-leading it backed by the minister for agriculture, you couldn't make it up at this stage

Not forgetting backed by our farmer board members also. The fact minister creed is happy to back unregulated lending to hard up farmers is :eek:

ganmo

jaymla627 wrote: »

Their much worse, at least banks have to abide by regulations and are governed by the Central Bank although that didn't work out to well in the past, but Glanbia are turning into a corporate monster that has it sights set on eroding the co-ops share-holding in the plc by any means possible and as cheaply as possible....
I reckon their game plan is to keep milk price payed out for as low as possible and for as long as possible so as not to go over the 30 c/l payback period for the gap scheme then hey presto, they will hit farmers who sign up for this scheme with a massive bill in 2020 that will facilitate them taking back and canceling a heap of co-op shares

I'm not sure of the regulations but is it legal for unregulated lenders?
or is there a work around for the coops or loaning to shareholders?

whelan2

jaymla627 wrote: »

Article up on agriland saying milk flex scheme is a great success and over a 1000 suppliers looking to take part, with average loan seeked up at 75,000...
Lads really have to think between taking up a hefty loan in this form and availing of the other scheme your basically knocking 4-6 cent of your milk cheque heading into the future, will be a serious handicap on your business going forward

in this article 1000 attended the meetings but they declined to say how many are signing up http://www.agriland.ie/farming-news/dairy-farmers-continue-investing-average-glanbia-dairy-loan-sought-exceeds-expectations/

ozil10

I attended one of these Milkflex meetings, they were giving the impression that you needed to get your loan application in straight away, this was to give you a better chance of availing of the loan if it was accepted because interest was so high and only 100m available.
I got a call yesterday off Finance Ireland asking was i taking up the milkflex loan,
Told them i had no intention of signing another msa for 8 years plus with glanbia and the terms of the loan were questionable to say the least.
so guessing the uptake can't be that great if they are ringing up people

Timmaay

http://www.agriland.ie/farming-news/dairy-farmers-continue-investing-average-glanbia-dairy-loan-sought-exceeds-expectations/

Starting to lose all respect for Agriland!!

whelan2

Apologies if I asked this before. Can a supplier take part in both schemes. Milkflex and advance payment schemes

ozil10

whelan2 wrote: »

Apologies if I asked this before. Can a supplier take part in both schemes. Milkflex and advance payment schemes

Yes you can take part in both schemes

Dawggone

I know of a supplier that's going for over €100k. Did a bit of expansion when land was expensive. Needs to clear trading a/c amongst other things.

Tunnel vision. Cows cows cows...