Engine Solution Program (ESP)
MonoCoque Diversified Interests has entered into many joint venture agreements with an asset holder to manage and assist in the asset’s repair and sale. MonoCoque has entered into these joint venture agreements in one of two ways: ESP provides an excellent exit strategy for any “distressed” assets, as well as “marketable” assets.
• An Intra-Group Loan Agreement wherein the 1st lien holder makes testament to the 1st and 2nd financing holder
• A secondary consignment agreement is drafted, detailing a bank lien is attached to the asset. Sponsor Equity holder will draft a schedule of secured lenders in our agreement and the amount of lien owed to determine accurate profit split to Mezzanine Financing and Sponsor Equity holder before engine induction.
The title of the asset would not transfer to MonoCoque. MonoCoque provides a Work Scope, efficiencies of 30%-50% in parts saving and regeneration, and MonoCoque can provide funding for part supply. MonoCoque employs a three-level hierarchy to represent the repayment of loans which ensures a transparent and mutually beneficial business relationship. Once funding has been secured, and the asset has been reconditioned, the Repayment Pyramid represents the order in which lenders will receive repayment as the assets are sold.
As represented in the figure above, the Senior Debt (a bank, in most cases) is the first to realize profit on its investment. MonoCoque is the second lender to realize profit on its investment. The asset holder then receives payment for the sale of the asset, which has enhanced value from the management of MonoCoque. Ordinarily, MonoCoque averages a six-month turnaround on its assets. All proceeds are paid out of escrow.