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Post by spareapennyor2 on Feb 11, 2020 11:59:08 GMT
email /update on site
offer to acquire the litigation
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agent69
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Post by agent69 on Feb 11, 2020 12:21:48 GMT
email /update on site offer to acquire the litigationI'm not familiar with the terminology.
Does this mean that somebody has offered to buy the debt from FS? Hopefully nobody related to the borrower
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pfffill
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Post by pfffill on Feb 11, 2020 12:33:18 GMT
email /update on site offer to acquire the litigationI'm not familiar with the terminology.
Does this mean that somebody has offered to buy the debt from FS? Hopefully nobody related to the borrower
I imagine it means that some law firm reckons, having reviewed the evidence, they have a good chance of successfully getting some money out of the accused, some of which they would hope to take for themselves, over and above their expenses.
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jaswells
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Post by jaswells on Feb 11, 2020 12:34:19 GMT
My understanding that this buys the right to pursue the debt, win or lose.
In all likelihood purchase of the litigation rights will likely be 10-20p in the pound. Which is reasonable based on the enormous financial cost, time and risk relating to this. I have to admit that for FS lenders this is probably the best way out of this mess now.
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agent69
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Post by agent69 on Feb 11, 2020 12:41:59 GMT
My understanding that this buys the right to pursue the debt, win or lose. In all likelihood purchase of the litigation rights will likely be 10-20p in the pound. Which is reasonable based on the enormous financial cost, time and risk relating to this. I have to admit that for FS lenders this is probably the best way out of this mess now. But probably not what the borrower would want (given that Harry the bastard would be a bit more direct in his action than FS).
Any chance that knowledge of this development might move the borrower towards settling the debt?
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adrian77
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Post by adrian77 on Feb 11, 2020 13:14:57 GMT
I have 9 of these loans and I got 9 emails- well that points to a good IT system I don't think
Hopefully after Friday we will get an answer to the following :
1) how much has been offered to FS to sell these litigation rights
2) how much has been spent to date by FS on legal action and will the litigation sale cover said expenses
3) how much of the profit will FS receive - I guess pursuing this muppet will be very expensive and would guess take a huge chunk out of any recovery - my thought are (based on exactly zero experience) are :
FS get 70% which I think is highly unlikely and the legal cost is £1m to effect a recovery then that is £1.3m recovered x 70% £910K which is guess would be about 40% recovery - personally I agree this is the best option as I have budgeted for 0% recovery. But maybe the new litigant could get court costs - now that would be a result.
I note this litigation has been offered to we investors - would love it if one of us took it one but sadly way out of my budget!
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Kyrios
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Post by Kyrios on Feb 11, 2020 13:24:00 GMT
I have 9 of these loans and I got 9 emails- well that points to a good IT system I don't think Hopefully after Friday we will get an answer to the following : 1) how much has been offered to FS to sell these litigation rights 2) how much has been spent to date by FS on legal action and will the litigation sale cover said expenses 3) how much of the profit will FS receive - I guess pursuing this muppet will be very expensive and would guess take a huge chunk out of any recovery - my thought are (based on exactly zero experience) are : FS get 70% which I think is highly unlikely and the legal cost is £1m to effect a recovery then that is £1.3m recovered x 70% £910K which is guess would be about 40% recovery - personally I agree this is the best option as I have budgeted for 0% recovery. But maybe the new litigant could get court costs - now that would be a result. I note this litigation has been offered to we investors - would love it if one of us took it one but sadly way out of my budget! I have several of this loans and no emails yet...
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Godanubis
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Anubis is known as the god of death and is the oldest and most popular of ancient Egyptian deities.
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Post by Godanubis on Feb 11, 2020 17:36:37 GMT
1 FS try to get money at great ongoing cost to Big Joe and his baseball bat and get nothing. 2 Give recovery to specialised collectors with no further outlay
3 Specialised litigators pursue debt and win any excess on costs not also recovered paid to FS
Stopping further loss seems a OK solution
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adrian77
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Post by adrian77 on Feb 11, 2020 18:26:37 GMT
sorry you have so much tied up in this farce- I guess like me you never realised all these art loans were linked Have you seen the DD thread on this one p2pindependentforum.com/post/281032/threadYou make valid points but FS were completely and utterly had over this one - nothing sophisticated they were wined and dined by this muppet and handed over the money for a glorified IOU when half-cut. Of course he sold the items! Also they never took additional surety which they should have done. They got themselves into such an almighty mess over this one I think selling the debt is the best move considering where we are. Hopefully the company that who buys the debt is not very pleasant and can blackmail this chap to either pay up or the FBI get their hands on him!
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Post by excalibur on Feb 11, 2020 18:41:46 GMT
Not got permission to open p2pindependentforum.com/post/281032/threadFor the Lowry painting FS states in it's general information, "A loan secured on a painting by LS Lowry. The painting is held at Constantines, London." This gives me the strong impression that this painting is at least held securely. If they said it was secured in the cellar of an abandoned pub I'd not have lent on this loan. Maybe the borrower will end up in the US courts in which case I will happy to attend and give my opinion on his sentence if found guilty.
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Post by defaultinator5000 on Feb 11, 2020 20:55:46 GMT
I am stunned that the administrator is willing to sell off this debt and not do what I expect which is to recover all money owed. The administrators have one task - to wind down the company with around 400 outstanding loans in a 1-year time frame. They will not engage in lengthy and costly lawsuits to recover one single loan so selling this debt to a third-party is the best you can hope for. It is very unfortunate it came to this, but that is how things stand.
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Post by excalibur on Feb 11, 2020 22:23:50 GMT
They've only been in administration since 23rd October 2019, so I don't see the rush for their 3 day deadline.
I understand the Admin process 'can generally only last for up to 1 year, although this can be extended by the consent of the creditors and/or by the court'. With the lack of detail about what is the price of the sale and who own the third party I think the 14 Feb deadline is wrong, and needs to be extended. Has this been marketed to any other third party. With the clarity in the media today about the borrower's wealth I would think this raises the confidence levels that he will eventually be able to repay the loans + interest and hence this is more valuable to a third party.
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Post by defaultinator5000 on Feb 12, 2020 8:42:53 GMT
They've only been in administration since 23rd October 2019, so I don't see the rush for their 3 day deadline. 23rd of October was 3.5 months ago. That is 30% if the designated time gone already. I agree the deadline is short, but what can you expect? To finish winding down the company in a year, the administrators need to liquidate one loan per day. I honestly don't think I would act much differently if I was in their shoes. The blame for this mess lies on FS who did not bother to secure the artwork nor make a wind-down plan, as well as FCA who, much like FS securing loans against non-existing assets, signed off the non-existing wind down plan.
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agent69
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Post by agent69 on Feb 12, 2020 8:51:59 GMT
I am stunned that the administrator is willing to sell off this debt and not do what I expect which is to recover all money owed. The administrators have one task - to wind down the company with around 400 outstanding loans in a 1-year time frame. They will not engage in lengthy and costly lawsuits to recover one single loan so selling this debt to a third-party is the best you can hope for. It is very unfortunate it came to this, but that is how things stand. If this is the case then why do the administrators not just sell off the entire loan book to a 'recovery' expert.
Come to think of it, if somebody else is better placed to recover the debt, why were they not put in charge in the first place.
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arby
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Post by arby on Feb 12, 2020 9:49:28 GMT
The administrators have one task - to wind down the company with around 400 outstanding loans in a 1-year time frame. They will not engage in lengthy and costly lawsuits to recover one single loan so selling this debt to a third-party is the best you can hope for. It is very unfortunate it came to this, but that is how things stand. If this is the case then why do the administrators not just sell off the entire loan book to a 'recovery' expert.
Come to think of it, if somebody else is better placed to recover the debt, why were they not put in charge in the first place.
Because most loans don't have the risk of multi year court battles and legal bills up to a million. They will settle the easy ones themselves, as they now are, then look to sell off the very problematic ones. We don't need to wait to know this one clearly falls under the second category.
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