Loan Restructure
If the borrower is consistently delaying payments or foresees problems repaying the loan, Trine can choose to restructure the repayment terms. The idea behind this is to give the solar company the chance to repay instead of going straight to legal proceedings.
Trine facilitates the loan restructure and will come up with a proposal to investors. Investors will then be asked to vote to approve these changes if the restructure have consequences for a longer period than 12 month, this is called a Special Resolution.
Special Resolution
A Special Resolution is the legal phrase used when the loan terms are changed requiring investors to give Trine the mandate for such a change. Under our current loan agreements, Trine is able to give our borrowers extensions up to 12 months without requiring a special resolution. All other terms can only be changed by Special Resolution and this can only be passed if a majority of investors participating in the vote, vote to approve the changes. That means that more than 50% of investors need to agree to the change, or those holding more than 50% of the loan notes in the loan.
All investors in the loan will be contacted by email and asked to vote by a written voting procedure. The written voting procedure simply means that investors can vote online and do not have to physically meet to vote.
For full details on your voting rights regarding a special resolution, take a look at our terms and conditions section 16.5
Default
A default occurs when the borrower fails to pay according to the terms of their loan. There can be different events that lead to default such as payments delayed more than 90 days or breaching clauses in the contract.
The default rate is the percentage of the total sum funded through Trine that is defaulted. A loan is classed as defaulted when the borrower is unable to repay the loan and investors have lost some or all of their investment and Trine does not deem it worth continuing the recovery actions. You can check our current default rate.
Here you can read more about the definitions of the loan statuses shown in your dashboard.