jj
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Jolly Jammy
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Post by jj on Jun 11, 2018 22:07:21 GMT
A positive aspect is that these borrowers have not paid up their loans. Thinking they won't have to pay anything since Collaterial is down the tubes. This means that we are still due money in. So I think up till now these legal costs can be offset against this.
I don't think this will take years to sort out considering these loans had a limited time frame i.e. six months with three months tolerance. The administrator cannot extend the loans.
Also through bank deposits the adminstrators knows the amount people have invested in COL, just not the specific loans. I would be happy to accept my deposits even if it means forgetting about the interest.
(just trying to be positive)
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Post by Butch Cassidy on Jun 11, 2018 23:31:26 GMT
Well BDO certainly hit the ground running...how long to find out something as basic as the records....geez They just didn't specify what kind of running exactly they meant - running to their corporate bank account with sacks full of lenders cash. I'm just glad we have the FCA watching all this to protect our interests - oh hang on!!!
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tx
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Post by tx on Jun 12, 2018 6:42:32 GMT
Just feel really powerless ...
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upland
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Post by upland on Jun 12, 2018 7:04:26 GMT
I cannot help but think that this will not help the remaining similar platform operators and I am surprised that there has not been more high profile help/aid from the industry to reduce the fallout , possibly its early days for that but it would have boosted my confidence if something like it had happened. I will not have lost that much as I like to diversify across platforms , my experiences in the stock markets of the world indicate that one should worry more about what you can lose than what you can make. Its been fun these past few years but I am slowly heading for the platforms that I perceive as being a bit safer and less likely to pull this sort of trick. These sort of offerings like Collateral have required a lot of time and effort to administer and follow up etc and once the defaults come into play the return is often better on some of the very big platforms for little effort at all.
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hazellend
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Post by hazellend on Jun 12, 2018 7:42:12 GMT
Just feel really powerless ... Stay happy. Merely a blip in the rollercoaster of life. I have a very large sum in col.
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jcm9000
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Post by jcm9000 on Jun 12, 2018 8:03:48 GMT
Seems it will all depend on what BDO can recover, with payout to everyone including the BDO partners' dogs since we will be in the creditors pot. Now what are the amounts due to non-lender creditors I wonder. They had a couple of million on their last accounts a long time ago - how much of that was funds due to lenders i wonder, if any (since they should have been segregated, cough). I'm also curious about S26 - are we the 'other party'? Other thought - any legal eagles know anything about the data protection act and if this third party should have kept the data for any length of time? Oh, if you want to put a face to all this: www.fpmlalternatives.co.uk/files/regal-asset.pdf Page 9. I'm buying some darts and putting it on the wall. Final thought - did anyone receive an email from BDO that the FAQ had been updated? Back to waiting I suppose. |
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Monetus
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Post by Monetus on Jun 12, 2018 8:59:19 GMT
I cannot help but think that this will not help the remaining similar platform operators and I am surprised that there has not been more high profile help/aid from the industry to reduce the fallout , possibly its early days for that but it would have boosted my confidence if something like it had happened. The word on the street is that there have been offers from other platforms to purchase the entire loan book as a going concern but BDO have not responded to them. This is something that I feel needs to be addressed with BDO as I'm of the opinion that it would likely to yield the best outcome for all parties rather than BDO trying to enforce security themselves. It would also help restore confidence in the wider P2P marketplace. BDO did recently say this in their appointment FAQ's so not sure why they would be ignoring potential expressions of interest? Are the Joint Administrators considering the sale of the loan book to another company?
The Joint Administrators will explore the feasibility and appropriateness of such a sale (should
there be expressions of interest) and will act according to the best interests of the Companies and
their creditors. The initial focus of the Joint Administrators, however, is to recover the books and
records and understand the nature of the outstanding loan book.
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SteveT
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Post by SteveT on Jun 12, 2018 9:10:49 GMT
But if there are no records of which COL lenders own parts in which loans / tranches, how would another platform take over the COL loan book? All they might be able to do is take on the loan recovery process and route all proceeds back to BDO, but its likely that LPA receivers will be doing much of that leg-work anyway.
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Monetus
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Post by Monetus on Jun 12, 2018 9:17:50 GMT
But if there are no records of which COL lenders own parts in which loans / tranches, how would another platform take over the COL loan book? All they might be able to do is take on the loan recovery process and route all proceeds back to BDO, but its likely that LPA receivers will be doing much of that leg-work anyway. Very valid point. I guess a lot is going to hinge on whether BDO are able to recover the platform data in regards to what can be achieved. Fingers crossed the third-party IT provider has some tech boffins who can get the job done.
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Post by Butch Cassidy on Jun 12, 2018 9:18:33 GMT
From everything I have see so far since the court imposed change to the FCA favoured BDO it appears clear that they are totally out of their depth - they do not appear to understand the Collateral business model, are unable to reconcile even a basic loanbook structure of lenders (or should that be creditors!!) holdings, they have some of the worst communication skills I have ever seen & still have the brass neck to charge £500/hr for such p**s poor levels of service. If this is the best the FCA could recommend we really are in the deep smelly brown stuff. This must be the worst recommendation since Jimmy Saville was given a knighthood.
Can lenders mount a rival bid to take over the administration? because for £500/hr it would be a nice little earner & we could hardly make a worse job of it, at least we understand the basic structure of the loans & what constitutes a relationship between lenders, borrowers, creditors, platform & hapless interfering regulator.
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p2pete
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Post by p2pete on Jun 12, 2018 9:22:14 GMT
I wonder why the court doesn't just issue a Legal Hold on company data at the point they are placed into administration? |
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upland
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Post by upland on Jun 12, 2018 9:33:12 GMT
I cannot help but think that this will not help the remaining similar platform operators and I am surprised that there has not been more high profile help/aid from the industry to reduce the fallout , possibly its early days for that but it would have boosted my confidence if something like it had happened. The word on the street is that there have been offers from other platforms to purchase the entire loan book as a going concern but BDO have not responded to them. This is something that I feel needs to be addressed with BDO as I'm of the opinion that it would likely to yield the best outcome for all parties rather than BDO trying to enforce security themselves. It would also help restore confidence in the wider P2P marketplace. BDO did recently say this in their appointment FAQ's so not sure why they would be ignoring potential expressions of interest? Are the Joint Administrators considering the sale of the loan book to another company?
The Joint Administrators will explore the feasibility and appropriateness of such a sale (should
there be expressions of interest) and will act according to the best interests of the Companies and
their creditors. The initial focus of the Joint Administrators, however, is to recover the books and
records and understand the nature of the outstanding loan book.Indeed , I had heard that there had been offers etc and upon reflection I wonder what would be in it for BDO ? I would have thought that any of the obvious contenders or a mix of them would have done the best possible job of unwinding these positions. However I guess that yesterdays FAQs paint a picture that makes that seem harder. I am a Beauforts ISA holder and they went into administration in the same week. I must say that the position there seems much more clear to me , I have a timetable for repatriation of my assets and quite good communications about it all , even letters via the postman ! The gory details will all come out no doubt when everyone has forgotten the name of Collateral and much of its assets will have been subsumed into somebody elses control.
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withnell
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Post by withnell on Jun 12, 2018 10:28:35 GMT
From everything I have see so far since the court imposed change to the FCA favoured BDO it appears clear that they are totally out of their depth - they do not appear to understand the Collateral business model, are unable to reconcile even a basic loanbook structure of lenders (or should that be creditors!!) holdings
While I agree that basic tasks seem to be taking an inordinately long time, is the situation any different from what we had under RR?
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Post by MoneyThing on Jun 12, 2018 10:33:13 GMT
Morning,
Given that the administrator yesterday determined that Collateral lenders would be classified as creditors to the business and that platform data may no longer be available, this places Collateral lenders in a somewhat difficult position. While this is not our concern, we do have considerable sympathy for lenders involved and we have been considering what practical help we may be able to provide.
We have made contact with an insolvency practitioner that may be prepared to act on behalf of any individual lenders to give them a collective voice. While they would not be the IP of course, since one has already been appointed, they are familiar with the P2P set up as they have acted for us before and they are an experienced administrator themselves. We have sent them some information and they are currently reviewing this to assess whether they can assist. In the meantime, if any lenders are interested in this type of solution, please let me know.
Kind regards,
Ed
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insideout
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Post by insideout on Jun 12, 2018 10:48:51 GMT
It is unclear to me yet that we will be 'creditors' in a formal sense because any purported BDO position arising from their own incompetence or inability to deal with the loan book as it should be dealt with COULD SURELY BE CHALLENGED IN COURT.
I think we are moving to a position of a Court challenge on behalf of major lenders - both to be treated as investors in loans and to have 'senior debt' in some loans recognised as such. Liability of FCA for their handling of the whole issue also needs to be considered.
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