I have been curious about this for some time: if several shareholders lend money to a property development spv is there anything inherently problematic about some shareholders choosing to be rewarded by a mixture of interest and distribution where others may wish to waive their interest and receive purely distribution - I am assuming this outcome could be achieved with a robust shareholder agreement and different classes of shares?
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Above and below line costs spring to mind.
Could get very tangled if parity is required within the agreement given the tax deductibility of the interest paid as against the non deductibility of dividends paid.
Other complications are of course things like having sufficient distributable reserves.
I often think that where everyone has different needs the LLP SPV possibly ought to be considered as an option so that each party has a degree of control over their own destiny (modus of cash extraction in their own hands)