hantsowl
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Post by hantsowl on Mar 14, 2018 9:12:28 GMT
Had a brief chat with Jessica yesterday. Comments: 1. the website is taking a little longer than hoped due to the IT guys being a bit slower now Col are in admin (they outsourced the website). 2. all money appears to be where it should be (uninvested funds etc) I suppose that the delay could be down to simply persuading the outsourced IT guys to actually do any work for a "company in administration". They may need paying up front along with payment of any current outstanding debt.
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gc
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Post by gc on Mar 14, 2018 9:31:19 GMT
Had a brief chat with Jessica yesterday. Comments: 1. the website is taking a little longer than hoped due to the IT guys being a bit slower now Col are in admin (they outsourced the website). 2. all money appears to be where it should be (uninvested funds etc) I suppose that the delay could be down to simply persuading the outsourced IT guys to actually do any work for a "company in administration". They may need paying up front along with payment of any current outstanding debt. I worked at a company that went into administration (about 20 years ago) and I would say it is more to do with bringing the administrators up to speed. Chances are they probably also have their own IT guy alongside the team and it is a slow process having to go through everything. Also, weeding out anyone with other agendas as believe me, this is rife when outside teams come in to situations like this. Patience is the key here.
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Post by dualinvestor on Mar 14, 2018 9:51:55 GMT
Whilst I am sure Jessica gives information in good faith this is a good illustration of why not to expect things to happen promptly. Inevitably in insolvencies things slow down. There is at least one more level of very prudent management for a start, 3rd parties need to cooperate (per hantsowl above) people unfamiliar with systems etc. It is better to be patient and expect delays and be pleasantly surprised if they don't occur than angry if the opposite happens. The one thing I will predict the important thing for most of you, actually getting your money back will take far longer than if the Administration hadn't happened. At the end of the day there is nothing you can do at the moment to expedite matters so all I can say is try to be patient |
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andy1
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Post by andy1 on Mar 14, 2018 10:14:32 GMT
Whilst I am sure Jessica gives information in good faith this is a good illustration of why not to expect things to happen promptly. Inevitably in insolvencies things slow down. There is at least one more level of very prudent management for a start, 3rd parties need to cooperate (per hantsowl above) people unfamiliar with systems etc. It is better to be patient and expect delays and be pleasantly surprised if they don't occur than angry if the opposite happens. The one thing I will predict the important thing for most of you, actually getting your money back will take far longer than if the Administration hadn't happened. At the end of the day there is nothing you can do at the moment to expedite matters so all I can say is try to be patient I totally agree with the sentiment of this but "insolvencies" is an emotive word and as far as I know, nobody is insolvent. COL did not call in administrators because they were running out of cash.
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Post by dualinvestor on Mar 14, 2018 10:27:22 GMT
Whilst I am sure Jessica gives information in good faith this is a good illustration of why not to expect things to happen promptly. Inevitably in insolvencies things slow down. There is at least one more level of very prudent management for a start, 3rd parties need to cooperate (per hantsowl above) people unfamiliar with systems etc. It is better to be patient and expect delays and be pleasantly surprised if they don't occur than angry if the opposite happens. The one thing I will predict the important thing for most of you, actually getting your money back will take far longer than if the Administration hadn't happened. At the end of the day there is nothing you can do at the moment to expedite matters so all I can say is try to be patient I totally agree with the sentiment of this but "insolvencies" is an emotive word and as far as I know, nobody is insolvent. COL did not call in administrators because they were running out of cash. True Andy but Administration is an insolvency procedure and whilst Collateral may not have been insolvent when it went into administration it does need protection from its creditors whilst the loan book is wound down and that can only be provided by an insolvency process.
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Post by dualinvestor on Mar 14, 2018 11:25:24 GMT
It is not a creditors voluntary liquidation either legally or in style. A CVL is covered by an entirely different chapter of the Insolvency Act and does not remotely compare with what is happening at the moment.
A CVL would be an entirely inappropriate way to run off a loan book.
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jlend
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Post by jlend on Mar 14, 2018 11:28:48 GMT
I do not have any col loans myself
I don't know if you have an rights under your contract to ask to replace COL UK as your agent for the loans
I have seen a similar clause with another p2p lender that can be done via a lender vote.
I don't know if this useful or not but I thought I would mention it.
Hope everything turns out well.
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Post by dualinvestor on Mar 14, 2018 11:43:45 GMT
Liquidation is a term sometimes used loosely, like Receivership. This is an Administration at the moment it may be followed by a liquidation (or a Company Voluntary Arrangement) but that will depend on circumstances in the future and it is far too early to predict what if anything will happen possibly a year or more down the road.
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withnell
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Post by withnell on Mar 14, 2018 14:04:11 GMT
I don't know if you have an rights under your contract to ask to replace COL UK as your agent for the loans There's a clause about non-performance of duties for 40 days. As people have mentioned that the Administrator's duty is to run the company in the interest of it's creditors - this doesn't mean that Lenders aren't a high priority, because the income stream is dependent on the continued administration of the COL loan book. The better the loan book is run, the higher the sale price / the longer the business can continue as a profitable entity
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jlend
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Post by jlend on Mar 14, 2018 14:35:57 GMT
I don't know if you have an rights under your contract to ask to replace COL UK as your agent for the loans There's a clause about non-performance of duties for 40 days. As people have mentioned that the Administrator's duty is to run the company in the interest of it's creditors - this doesn't mean that Lenders aren't a high priority, because the income stream is dependent on the continued administration of the COL loan book. The better the loan book is run, the higher the sale price / the longer the business can continue as a profitable entity Good point about the administrators. At least it sounds like you might be able to explore moving the loan book elsewhere if there is a non performance for 40 days I hope all goes well.
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mason
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Post by mason on Mar 14, 2018 18:20:13 GMT
There's a clause about non-performance of duties for 40 days. As people have mentioned that the Administrator's duty is to run the company in the interest of it's creditors - this doesn't mean that Lenders aren't a high priority, because the income stream is dependent on the continued administration of the COL loan book. The better the loan book is run, the higher the sale price / the longer the business can continue as a profitable entity Good point about the administrators. At least it sounds like you might be able to explore moving the loan book elsewhere if there is a non performance for 40 days I hope all goes well. I'd imagine if there was an option to move the loan book elsewhere, the administrator would be all over it as a priority.
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Post by dualinvestor on Mar 14, 2018 18:38:56 GMT
Apart from the Administration there is (probably) a living will that all P2P are required to have. It is supposed to be financed by ring fenced funds. The Administrator is likely the appointee under the will. He therefore has an interest and money in running the loan book.
I agree he would be very interested in selling the loan book but I doubt it is practical in the circumstances and even if it were the new managers would be after profit so it might not be a good deal for lenders.
As for a 40 day non management clause I think it would be extremely difficult to enforce.
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mason
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Post by mason on Mar 14, 2018 20:50:39 GMT
I thought the actual loans were held in a separate company not in administration so the administrator couldn't sell the loans. It was not their loan book to sell. There is a company acting as the security trustee, which holds any security for the loan book. The company in administration is responsible for acting as the agent for lenders and managing the loans in accordance with the T&Cs. I imagine the loans could be moved elsewhere in more than one way: a company could acquire the platform and be nominated as the new agent responsible for managing the loans (i.e. existing loan agreements would remain in place), or alternatively one or more companies could buy up loans by way of refinancing them (i.e. existing loan agreements would be repaid).
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ali
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Post by ali on Mar 14, 2018 21:11:15 GMT
I thought the actual loans were held in a separate company not in administration so the administrator couldn't sell the loans. It was not their loan book to sell. More complicated than I thought. If you search the London Gazette for the obvious company name you should find the administration notice easily enough. That will tell you that three related companies were put into administration, including the company that holds the securities.
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jlend
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Post by jlend on Mar 14, 2018 21:16:31 GMT
I thought the actual loans were held in a separate company not in administration so the administrator couldn't sell the loans. It was not their loan book to sell. More complicated than I thought. If you search the London Gazette for the obvious company name you should find the administration notice easily enough. That will tell you that three related companies were put into administration, including the company that holds the securities. Thank you for helping making it clearer.
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