Avoid Default at end of Trust Preferred Securities Interest Deferral Period

If you might have trouble making the lump sum payment that will come due when your Interest Deferral Period expires MOGO can help you successfully avoid this looming default! When the deferral period has less than 8 quarters remaining Trust Preferred Securities (TruPS) investors are likely to accept offers in compromise, ranging from settlement of the outstanding deferred interest amount to significantly discounted redemption. Forgiveness of some or all of the deferred interest or an extension of time to pay that interest will cost very little while potentially providing your bank holding company with significant additional capital. We have successfully accomplished this and can help you do the same!

Two of our clients have significant indentures to Statutory Trusts that issued Trust Preferred Securities, one $8 million and another $20 million from 6 different Statutory Trusts. We have been successful in locating the owners of 4 of the 6 issues and have initiated settlement discussions. We cannot guarantee finding the owners of your particular TruPS issue. Even if we can find the owners, we cannot be sure that the TruPS will be held in a entity with the authority to negotiate any early redemption, discount or interest deferral forgiveness. However, you will never know if we do not try!

You may not currently be in a position to use capital for a discounted redemption, but an interest deferral forgiveness or extended payment period for the deferred interest may actually give you additional capital. Call or email me with your questions or comments, or ask us for a specific proposal!