FS Action Group Updates (FSAG Administrators only)

REDACTED MINUTES



Note to the lenders regarding the CC minutes below:


Please be aware that the Creditors Committee members are forbidden to engage in loan specific queries and/or queries identifying loans/borrowers, and/or any [pending or current] litigation matters and most financial topics, so please do not ask us, as we are not allowed to respond and won’t respond or we will be kicked-off the committee. Thank you for your understanding.



REDACTED MINUTES


FUNDINGSECURE LIMITED – IN ADMINISTRATION

MINUTES OF THE FIRST MEETING OF THE CREDITORS’ COMMITTEE

HELD AT THE CASHIER CONFERENCE ROOM ST PANCRAS RENAISSANCE HOTEL,  EUSTON ROAD, LONDON, NW1 2AR ON 17/12/2019 AT 2.38PM.



THE FOLLOWING MATTERS WERE DISCUSSED AND/OR AGREED AS APPROPRIATE:


1 The NDA was requested by the FCA to be signed by all Committee Members and is designed to protect the recoverability of the loans.


2 An email will be sent to investors advising that updates will be provided in early course.


3 Where there are part complete developments the Administrators can look for bridging loans on appropriate terms but without being required to do so and without taking on any personal liability for such funding arrangements.


4 The Administrators will continue to use their professional judgment in the interests of Investors and creditors when considering realisations which will result in a capital loss being suffered by Investors. The Administrators will advise Investors affected by such loans as and when appropriate.


5 Where a property has been realised at (at least) £100,000 less than the valuation, and where it is possible to do so, £10,000 will be retained for a retrospective valuation to ascertain whether there is any potential claim in negligence against the original valuer in relation to the original valuation. The Administrators may then sell, assign or seek funding to pursue such a claim if appropriate and so advised.


THE FOLLOWING WAS NOTED:



1 The Chair explained the committee’s role and Philip Holden advised that as per Brilliant Media Specialists Ltd Case 2015 BCC the committee’s role was as follows:


“Whilst the views of a creditors' committee should be taken into account during an administration and will frequently be taken as reflecting the views of the creditors as a whole, it is not for the committee to determine how the administration should be conducted. That is a decision for the office holder in performance of the duties and powers Parliament has thought fit to entrust to administrators. The outcome of such decision making, which will be made from time to time on both macro and/or micro bases (as appropriate), will depend upon the office holder's assessment of how best to achieve the purpose of the administration in accordance with the powers conferred upon them by paragraph 5 9 of Schedule B1 and within Schedule 1 to the Act.”



2 Each member of the committee was reminded of the SIP15 guidance for creditors on the role of the committee issued prior to the committee’s formation.



3 The Administrators gave an update as to what steps they had undertaken in respect of the Administration to date.



4 The Administrators updated the position in respect of obtaining Counsel’s advice on the Trust.



5 The Administrators provided information around potential issues they had faced and identified in respect of realising assets for the best value, including details of Receivers who had been appointed prior to the date of the Administration.



6 Information was given in respect of potential negligence claims against valuers and some examples where it appears there is a potential negligence claim were given.



7 It was agreed that Philip Holden would approach commercial litigation funders/acquirers in order to seek third party funding if required.



8 The committee members are not able to benefit or profit from their position on the committee.


9 The committee shall meet as and when considered necessary by the Joint Administrators or at the request of a member of the committee. It was anticipated that the meetings would at least be quarterly.


10 Prior to passing the resolution agreeing the basis of the Administrators' remuneration, it was confirmed that the Administrators' information about the basis of fees proposed had been provided to all creditors in his Report and Statement of Proposals.


11 The committee members asked questions around the mechanics of the Administrators remuneration and sought clarification as to where these funds would come from. The position was explained to committee members prior to passing the requisite resolution.


IT WAS RESOLVED THAT:


1 Under Rule 18.16 of the Insolvency Rules that the basis of the Administrators' remuneration be fixed at 2.5% of the “defaulted” assets realised (those loans where the term has expired) (exclusive of VAT and disbursements) and 0.125% of the “in term” assets realised (those loans where the term has not expired) during the conduct of the Administration (exclusive of VAT and disbursements) and the allocation of those fees, costs and expenses on pro rata basis amongst all creditors and Investors of the Company as detailed in the Administrators' Report and Statement of Proposals.


2 Under Rule 18.16 a set amount of £25,000 (exclusive of VAT) in respect of statutory formalities


3 Pre-appointment remuneration in respect of CG&Co of £7,500 (exclusive of VAT)


4 Pre-appointment remuneration in respect of drydensfairfax solicitors of £3,600 (exclusive of VAT)