Collateral UK Limited Collateral Sales Limited Collateral Security Trustee Limited (together, “the Companies”) – All in Administration
Further to the circulation of the Joint Administrators’ proposals dated 21 June 2018 in respect of the Companies, please find attached a FAQ document in relation to a number of queries submitted by investors to date.
"THIS DOCUMENT IS PUBLISHED BY THE JOINT ADMINISTRATORS ON BEHALF OF THE COMPANIES. THE JOINT ADMINISTRATORS ACT AS AGENTS OF THE COMPANIES AND WITHOUT PERSONAL LIABILITY Collateral (UK) Limited Collateral Sales Limited Collateral Security Trustee Limited (together, “the Companies”) – All in Administration
Frequently Asked Questions
I have received a pre-completed proof of debt form. Do I need to sign and return it?
Investors do not need to return the proof of debt forms to the Joint Administrators at this time, unless they wish to participate in the voting process as outlined in Section 16 of the Joint Administrators’ proposals dated 21 June 2018 (“the Proposals”). Whilst the Joint Administrators welcome investors’ participation, investors’ rights (including rights to recover sums owing to them) will not be prejudiced if they do not participate in the voting process.
What does the amount on the pre-completed proof of debt form reflect?
The information that has been sent to investors contains details of their total exposure to the Collateral platform, as extracted from the Companies’ records as at 28 February 2018. No verification work in relation to the accuracy of these sums has been undertaken to date. As explained in the Proposals, the Joint Administrators’ efforts to recover the Companies’ electronic data continue.
For the avoidance of doubt, the pre-completed proof of debt forms do not include any interest that may have accrued between 28 February 2018 and 27 April 2018.
Your attention is drawn to Section 16.1 of the Proposals which states “…the claim amounts included in the proof of debt forms are, at this stage, solely for the purpose of voting in relation to the Proposals (i.e. they will not in any way affect your rights to recover any sums owing – whether as a result of trust or unsecured claims against the Companies). It is accepted that the nature and/or extent of these claims may change as the Administrations progress and further information/analysis becomes available”.
I want to participate in the voting process, what do I have to do?
Investors and creditors who wish to participate in the voting process have to send their signed proof of debt form to the Joint Administrators, together with either:
1. The completed postal resolution at Appendix 10 in relation to resolution (C), for the formation of a Creditors’ Committee; or
2. The request for a decision form at Appendix 7, in the event that they wish to object to resolutions (A) and (B), which will otherwise be approved by ‘deemed consent’ on 5 July 2018, and request a physical meeting of creditors.
Investors and creditors who do not wish to object to resolutions (A) and (B), and who do not wish to make a nomination in respect of the Creditors’ Committee, are not required to vote.
Do I have to return any forms (proof of debt, postal resolution) by post, or is it also possible to submit them by e-mail?
Any forms can be submitted by post to BDO LLP, 55 Baker Street, London, W1U 7EU or by email to [email protected]
I have not yet received a proof of debt form, what do I need to do?
If you are an investor and you have not yet received a pre-completed proof of debt form, please email [email protected] providing details of your investment.
The amount in my proof of debt form is incorrect, what should I do?
As stated in the Proposals, at this stage, no action needs to be taken. However, investors are welcome to return an amended proof of debt form, attaching evidence in support of their amended claim, if they have such information to hand.
Who can participate in the Creditors’ Committee?
Any investor or creditor of the Companies is entitled to participate in the Creditors’ Committee. An individual who is neither an investor nor a creditor can participate, provided that they are nominated by an investor or creditor to act as their representative.
I wish to participate or nominate someone to participate in the Creditors’ Committee. Do I need to return any forms?
Yes. Please complete the resolution at Appendix 10 of the Proposals and return it together with a signed proof of debt. As explained above, forms can be sent by post or by email.
What happens if more than 5 nominations are received for the Creditors’ Committee?
A Creditors’ Committee can have a minimum of 3 and a maximum of 5 members. If more than 5 members express an interest in acting as Committee members, a process will be undertaken to determine which nominated individuals are to be elected as one of the 5 members.
Is it possible to nominate an individual who is neither an investor or creditor to serve on the committee?
Yes, it is possible. However, as noted above, the individual would need to be nominated by an investor or creditor using the form at Appendix 10 of the Proposals."
I've just done a bit of thread tidying here to remove most of the Refresh Recovery related information. It's not gone forever though, some of it was re-quoted posts from other threads, and I have placed everything from this thread in a locked thread here.
Notice of deemed consent of the Joint Administrators’ Proposals was included at Appendix 6 of the Joint Administrators’ Proposals, which were emailed to investors and creditors and uploaded to the dedicated Collateral portal on 21 June2018.
No objections were received to the deemed consent procedure and, consequently, Resolutions A and B of the Joint Administrators’ Proposals were deemed to have been approved on 5 July2018.
In addition, a decision by correspondence form was included in the Joint Administrators’ Proposals in respect of Resolution C, which invited investors and creditors to establish a Creditors’ Committee if sufficient investors and creditors were willing to be members. Investors and creditors were asked to return the decision by correspondence form, together with a statement of their claim, on or before the Decision Date of 5 July 2018.
By the Decision Date, investors and creditors voted in favour of forming a Creditors’ Committee. A Creditors’ Committee must have a minimum of three and a maximum of five members. The Joint Administrators’ have currently received more nominations than the maximum number of members allowed. We are currently liaising with the nominees and will be writing to investors and creditors shortly regarding the constitution of the Creditors’ Committee."
In Edit: Just noticed now in the public domain posted on their website.
"Dear Sir(s) Collateral (UK) Limited Collateral Sales Limited Collateral Security Trustee Limited (together “the Companies”) – All in Administration
I refer to my appointment as Joint Administrator in relation to the Companies, and write to convene a Decision Procedure in respect of the formation of a Creditors’ Committee (“Committee”).
Following the circulation of the Joint Administrators’ Proposals on 21 June 2018, investors and creditors resolved that a Committee be formed. The purpose of the Committee is to represent the interests of investors and creditors as a whole, rather than just the interests of its individual members. The role of the Committee is to assist the Joint Administrators in discharging their functions and obligations, and will include liaising with the Joint Administrators in relation to matters of strategy, determining the basis and level of the Joint Administrators’ fees, and generally acting as a sounding board for the Joint Administrators to obtain views on matters pertaining to the administrations.
As outlined in the Joint Administrators’ Proposals, a Committee must comprise between three and five investor and/or creditor members. Thirteen nominations were received from investors in response to the Joint Administrators’ Proposals, which is more than the maximum number of members allowed.
The Joint Administrators are therefore reverting to the general body of investors and creditors to determine the membership of the Committee by a Decision Procedure by correspondence. Investors and creditors have the opportunity to indicate which of the thirteen nominees they wish to participate in the Committee by completing the attached postal resolution and emailing a copy of the resolution to [email protected], or by returning it to the Joint Administrators’ office. Investors and creditors may only vote for one of the thirteen nominees listed in Appendix 1.
Please note that it is not mandatory for investors and creditors to vote in relation to the constitution of the Committee; this does not affect in any way investors’ and creditors’ rights to recovery from trust assets and/or other assets belonging to the Companies. However, all investors and creditors are welcome to vote by completing and returning the attached form of resolution.
I enclose the following documents in respect of the proposed nominations for membership of the Committee: 1. Appendix 1: a list of the 13 nominees for the Committee, in alphabetical order (by surname).
2. Appendix 2: brief background information provided by each nominee, so that investors and creditors are in a position to make a better informed decision.
3. Appendix 3: formal Notice of a Decision Procedure, including a voting form in which investors and creditors can vote for their preferred Committee nominee.
Please note that, if you have not already done so, you will need to send a proof of debt form, enclosed at Appendix 4, for your postal resolution to be included in the Decision (i.e. if you have already provided a proof of debt form when voting on the Joint Administrators’ Proposals, it is not necessary to do so again now). As set out in clause 16.1 of the Proposals, for those investors that do not presently hold details of the exact sums that they are owed, they may use the pre-completed proof of debt forms that have previously been sent to all investors by the Joint Administrators. As recorded in the formal Notice of Decision Procedure, if certain thresholds are reached, investors and creditors may requisition a physical meeting to consider this resolution by writing to me within 5 business days. In this respect, the minimum number of investors and/or creditors required to requisition a meeting is any of the following: (a) 10% in value of the investors/creditors; or (b) 10% in number of the investors/creditors; or (c) 10 investors/creditors. Please contact [email protected] should you have any queries in relation to the contents of this letter. Yours faithfully For and on behalf of The Companies
Joint Administrator Authorised by the Institute of Chartered Accountants in England & Wales in the UK"
"Appendix 1 List of nominees for membership of the Creditors’ Committee:
1. Mr Rodney Buckland 2. Mr Adam Bunch 3. Mr Andrei Dikouchine of 3S Capital Partners B.V. 4. Mr Scott Gorman 5. Mr Roy Hughes 6. Mr Peter Hunt 7. Mr Peter Lawrence 8. Mr Anthony Leech 9. Mr Graham Martin of BondMason Client Limited 10. Dr Avi Rapaport 11. Mr James Shutler 12. Mr Richard Winslow 13. Dr Steve Wozniak
Appendix 2 Creditors’ Committee nominees’ background information
Mr Rodney Buckland “Rodney Buckland is a semi-retired physicist and has been a substantial P2P lender on various platforms since early 2009. He has a wide experience of committee work at local, national and international levels, and has been closely following the evolution of the Collateral administration through professional networks since early February. He would like to see ground rules and reliable precedents for the P2P sector emerge from the Collateral collapse.”
Mr Adam Bunch “I am an entrepreneur based in London who has been investing in P2P since 2014 both as an individual and through my Limited company. I am an active member of www.p2pindependentforum.com under the username “Monetus ” where you can read some of my wider thoughts on the P2P industry. I have exposure to every type of loan on the Collateral platform ranging from jewellery chattel assets through to the latest development loan tranches so if elected I will aim to represent the interests of all investors across the entire loan book.”
Mr Andrei Dikouchine of 3S Capital Partners B.V. “Over twenty years of experience in global capital markets gained through tenure with Salomon Brothers, Schroders, KPMG and Deloitte. Founder of 3S Capital Partners, a regulated fund manager focused on the UK P2P lending sector. Board member of Relendex Limited, a fully permitted P2P lending exchange. Since 2003 lectures Advance Financial Modelling at the London Business School. Holds advance finance and banking degrees from the LBS (1998) and the LSE (1996) respectively.”
Mr Scott Gorman “I'm an experienced lender with multiple P2P platforms including Collateral. I will assist the Joint Administrators to maximise recoveries to all investors and creditors. To the extent possible, I prefer that loans are settled on a loan by loan basis with net proceeds returned to the relevant investors, including the application of any priorities for different loans or different tranches of loans.”
Mr Roy Hughes “I am a recently retired Accountant (ACCA) having worked in both the Public and Private sector with experience in dealing with complex government legislation and complicated schemes of work at Director level. Whilst I have no specific experience of a creditor committee workings, nor that of the Administrators role, the skill set I acquired during my career will hold me in good stead to discharge the duties required of a Creditor Committee member. As such I believe my natural attention to detail, an enquiring mind, a pragmatic approach and, most importantly, available time to devote to the role makes me an ideal candidate for one of the positions on the Creditor Committee.”
Mr Peter Hunt “Peter Hunt (Bs.c MIM, C.Eng, CDipAF) – age 69. I have been retired for 7 years, and serve as a volunteer Lock-keeper on the Droitwich Junction canal for a day and a half in the summer. I was formerly a Business Development Director for Civica UK Ltd, who are one of the leading global Public Sector IT-based services providers. My role was in the Managed Services Division, supporting other divisions in the promotion of hosting, telecommunications and Managed services. We worked with Local and Central Government, Defence Contractors, hospitals, schools, libraries, police, and several high-profile commercial organisations. I am extremely familiar with committees having chaired many, and I am notoriously pedantic!”
Mr Peter Lawrence “Qualified Chartered Accountant for over 30 years, and former Licenced Insolvency Practitioner. Have acted as Administrator, Receiver, Liquidator and other office holder in over 100 cases, also served on many Creditors’ Committees of other office holder’s cases on numerous occasions. Was a London partner in a large accountancy practice. Have been requested to stand for nomination to the Creditors (Investors) Committee of the Collateral companies by a large and varying, by value, number of lenders on the platform.”
Mr Anthony Leech “I am a private investor and small business owner who has been investing in equity funds for 20 years and have more recently added individually selected equities into my portfolio. As a further diversification I began lending peer to peer five years ago. Collateral was added to my portfolio last year so my loan portfolio is understandably quite small. My small business is not related to my investments which are principally a combination of hobby and private pension holdings. But as my small business allows me to work from home it is likely that I can allocate some of my time to supporting the requirements of the creditors’ committee in view of my desire to recover the capital and interest I held on account with Collateral when they went into administration.”
Mr Graham Martin of BondMason Client Limited “BondMason Client Limited has extensive experience in investing in the asset classes to which the Collateral Companies are involved. The company is willing and able to devote its resources to the Committee thereby representing the interests of other creditors and assisting the Joint Administrators where applicable. The management team at BondMason have experience of sitting on formal and informal creditors’ committees both in the UK and Internationally.”
Dr Avi Rapaport “Dr. Avi Rapaport is the investment manager of an absolute return hedge fund, has twenty years experience in the financial markets, and invests all his private capital into the fund he runs. PhD in financial economics from the University of Chicago Booth School of Business and Department of Economics supervised by Nobel laureates Eugene Fama and Lars Hansen. MBA from Chicago Booth School of Business and BA with highest distinction from Tel Aviv University. Worked as special adviser to the chairman of the board of directors of UBS in Zurich, Switzerland. Served in the Israeli Airforce as a flight controller. Teaches at the University of Zurich.”
Mr James Shutler “Currently I work as a self-employed chartered tax adviser and accountant having spent the last 11 years working as the Tax and Legal Director and Company Secretary of a large internet company. During my time in the role I gained extensive experience of both financial and legal matters arising in a web-based business and believe that these skills will be helpful in protecting the interests of the creditors during the administration of the Collateral group of companies.”
Mr Richard Winslow “As a committee member I will make myself available to attend all meetings, that during those meetings I will represent all Collateral investors fairly with the goal to work and recover as much of our investments back as possible, while balancing decisions that may increases costs against the repayments. I am the MD for an Internet company with P&L responsibility. I am experienced in working with a large variety of stakeholders, analysing opportunities, making sound business decisions and gaining results. My experience as a business analyst and decision maker will assist in our goal as investors. I am organised, thorough and fast to respond. We need the committee and BDO to act swiftly to ensure those assets we hold a right to (legal charges over assets) are upheld. I have worked with BDO in the past and have a good understanding of what to expect from BDO to move forward on our behalf. As an individual I have invested within Collateral and am very motivated that all decisions made are in favour of us as investors.”
Dr Steve Wozniak “My early career was as a research scientist involved in many aspects of buildings technology and economics. I have been an expert witness in court cases. I helped to formulate some British Standards and parts of Building Regulations. I have twice given evidence to Select Committees of Parliament, once as a government scientist and once privately. I was a BTL landlord before diversifying into P2P where I currently have major investments in ten platforms (including 1% of the Collateral loan book). I am keen to see a speedy resolution with original loan terms maintained. I have written books, reports and many magazine articles (a long time ago). I may write some articles on P2P. As well as my theoretical and committee experience I have a lifetime of practical involvement in building. My hobbies include many types of dance. My interests include nature conservation and resource depletion.”"
Just got in and found the following email and attachment from BDO. Possibly not in the public domain yet, I hope no-one tries to sue me, but hey.......
Attachment quoted below, and just to add on a personal basis, thanks to all who put themselves forward, and congratulations to all the selected members of the Committee - hopefully you can now assist with ensuring the return of as much of investors funds as possible and as swiftly possible. Good luck to all.
"TO ALL KNOWN INVESTORS AND CREDITORS 22 August 2018
Collateral (UK) Limited Collateral Sales Limited Collateral Security Trustee Limited (together “the Companies”) – All in Administration
I write to advise you that the decision process for the membership of the Creditors’ Committee (the “Committee”) has now completed and that the following individuals/companies have been elected by investors and creditors to serve as members of the Committee.
Mr Adam Bunch
Mr Peter Lawrence
Mr Graham Martin of BondMason Client Limited
Mr Richard Winslow
Dr Steve Wozniak
I would like to thank all thirteen nominees who offered to participate on the Committee.
As previously advised, the purpose of the Committee is to represent the interests of investors and creditors as a whole, rather than just the interests of its individual members. The role of the Committee is to assist the Joint Administrators in discharging their functions and obligations, and will include liaising with the Joint Administrators in relation to matters of strategy, determining the basis and level of the Joint Administrators’ fees, and generally acting as a sounding board for the Joint Administrators to obtain views on matters pertaining to the administrations.
I am now liaising directly with the Committee members in relation to the formal establishment of the Committee and to arrange the first Committee meeting.
The Joint Administrators will also continue to report to investors and creditors in accordance with their statutory duties and provide further updates when appropriate.
Please contact [email protected] should you have any queries in relation to the above. Yours faithfully
For and on behalf of The Companies Shane Crooks Joint Administrator Authorised by the Institute of Chartered Accountants in England & Wales in the UK"
The Collateral Creditors Committee meeting took place today at the BDO offices in London.
The vast majority of information in regards to the meeting is of course confidential and under NDA but I can give the following updates:
- The meeting was detailed, engaging and constructive and I was pleased with how open BDO were with the Committee.
- My own personal opinion is that they are managing the loan book in an intelligent way and handling recoveries sensibly and in the best possible interests of investors.
- BDO are currently liaising with the directors and other third parties who have information concerning the Companies affairs in order to gather information that will assist them with the process of administration.
- The IT platform and data has been recovered and restored, and continuing efforts are being made to create a front end that will enable BDO to manipulate the data in a useful way - with the ultimate goal being the reconcilation of the entire loan book.
- BDO are in dialogue with a significant majority of the borrowers. A number of loans have been repaid to date (being principal plus interest), and a number of other repayments are expected over the next few weeks.
- BDO have received a number of repayment proposals from borrowers, which are being considered. In respect of the chattel loans, a number of borrowers are making the stock available for BDO to take into collection for disposal.
- BDO are receiving legal and property advice from S&B and GVA where appropriate.
- They are working with borrowers consensually to repay loans wherever possible, but are also relying on Collateral’s rights to enforce the loans in the event that loans remain unpaid or no appropriate repayment proposals are received.
- I was personally pleased to hear that they are taking a firm approach with borrowers and using all possible avenues of recovery to enforce loans.
- It is currently too early to say what the likely total level of recoveries from the loan books will be but BDO are pursing all lines of enquiry to maximise recoveries for investors and creditors.
- The next Creditors Committee Meeting will likely be taking place in early December (so around 2 months time).
- There were sandwiches for lunch (no caviar sadly).
Last Edit: Sept 26, 2018 20:30:11 GMT by star dust
OK I'm going to answer a few questions here with the permission of BDO but I'm making it clear that this will be the FINAL post I will make on this subject for now.
I've pretty much reached the limit of what I'm able to discuss publicly and it's simply not viable or beneficial for this to turn into a "back and forth" Q+A session:
1. Can you say whether any timescale for returning funds was discussed?
It's far too early for that at this stage - BDO are focussed on getting the money in. Providing a timescale for lenders funds to be returned is currently impossible and unrealistic.
2. If so can you say if interim payments were proposed?
3. Did BDO show any sign of thinking that communicating information from the meeting to investors might be a good idea?
Yes. This information is circulated with the permission of BDO who are happy to do so in order to keep the wider lender base informed as they realise investors are concerned.
4. How are BDO planning on distributed recovered funds?
BDO have received legal advice and are ideally working towards the goal of distributing funds recovered for trusts assets (i.e. property and chattel) on a loan-by-loan, tranche-by-tranche basis and by following the original agreements if it is possible to do so (which is of course dependant on the recovery of data).
5. Have BDO received any offers to purchase the loan book?
The "interested regulated party" alluded to by Mr Craig of Refresh Recovery in his "leaked" report who "made an offer to buy the whole of the loan book and satisfy investors at 100p in the pound" also failed to materialise.
6. I'm concerned about BDO's fees. How will we know if they are spending all our hard-earned money on posh lunches and strippers etc?
The Creditors Committee are tasked with approving BDO's fees so they will of course be monitoring progress throughout the administration.
The next Creditors Committee meeting has been set for the 12th December.
Just prior to the BDO meeting, I will also be meeting with other Committee members to discuss a few aspects of the administration - with the main topic of discussion being BDO's fees that we have all been asked to approve.
The second Collateral Creditors Committee meeting took place today at the BDO offices in Central London. The vast majority of the meeting is covered under NDA and due to the sensitive nature of the information discussed it would not be in the interests of investors for the material to be shared in the public domain. However here are a few updates that are not covered by the NDA...
The Administrators remain in dialogue with a significant majority of the borrowers. A number of repayments are expected shortly and the Administrators have received a number of other settlement proposals which are being considered. The Administrators are obtaining appropriate legal and property advice from S&B and GVA. Whilst they will prefer to resolve matters consensually with the borrowers, they will rely on Collateral’s rights to enforce the loans in the event that loans remain unpaid or no appropriate settlement proposals are received. This may include appointing receivers over the properties held as security. In respect of the chattel loans, all but one of the borrowers have returned their stock, which the Administrators now have in their possession and are currently valuing. It is currently too early to determine the likely total level of recoveries from the loan books.
The administrators appear to have made significant progress with the recovery of the platform data and now have much more meaningful data available to them. Committee Members who hold an active investment in the platform were provided with a breakdown of their individual loan positions recovered directly from the Collateral databases. The data retrieved appeared to be accurate to within a small margin of error and feedback on the accuracy of the information amongst Committee members was positive. The Administrators will be continuing their efforts to recover and refine the data retrieved over the course of the coming weeks.
Whilst several Committee members expressed various concerns in regards to the level of fees in both a pre-Committee meeting and the main meeting itself, the decision was ultimately made to "accept the inevitable" and approve the Administrators fees to date. The alternative would be the Administrators having the ability to take the matter to court which would likely result in them being approved anyway and would create significant additional costs to the Administration (as well as significantly slowing progress made). The Administrators have agreed to provide a new updated estimate of total likely costs based on a worse case scenario and it's clear at this point that total costs will be higher than the original proposals presented by BDO on the 27th of June.
During the meeting it was proposed by some Committee members that the Administrators could consider providing more regular information and brief updates to the investor base (for example when loans are repaid) via the Collateral portal on the BDO website. The Administrators have taken this feedback on board and in future will endeavour to update investors using the dedicated website more frequently (although not following any set schedule).
Some members of the forum had expressed to myself and another Committee member a desire to forward and distribute a letter regarding errors in the FCA register to all investors in Collateral. Another Committee member will be forwarding the letter to BDO this week who will review the content and consider this matter further.
Various people had emailed myself and other Committee members in regards to not receiving the previous Administrators Proposals communication from BDO. This was mentioned to the Administrators and to the best of their knowledge should just be an isolated incident (possibly related to an internal email error) as they are still in possession of all your details and you are still on their mailing lists. If anyone has any issues in the future then please feel free to let me know and I can follow up.
The next meeting is scheduled for the end of February / early March. I will let you all know when the date is confirmed.
NOTE: RESPONSE DEADLINE (WHICH CAN BE BY EMAIL) FRIDAY 11 JANUARY.
"TO ALL KNOWN INVESTORS 21 December 2018
Dear Sir(s) Collateral (UK) Limited Collateral Sales Limited Collateral Security Trustee Limited (together “the Companies”) – All in Administration
Further to my report to all investors and creditors on 26 November 2018, I write in relation to a particular matter arising out of the Joint Administrators’ efforts to recover the outstanding loans advanced to borrowers through the Collateral platform.
As previously reported, the Joint Administrators are in discussions with a number of borrowers in relation to the outstanding amounts due. Whilst we remain hopeful that the loans will be repaid or refinanced by the borrowers on a consensual basis, we are taking all necessary steps to ensure that the Companies are in a position to enforce their rights over loans in those circumstances where a borrower is unable or unwilling to repay the outstanding amount due. Such enforcement action will include, where necessary, enforcing the security held over the borrowers’ property and other assets with a view to selling that property and those assets for the benefit of those investors that participated in the relevant loans.
Lender Resolution The Terms and Conditions governing the contractual relationship between investors and the Companies require investors to pass a Lender Resolution before the Companies can enforce over any security.
To enable the Joint Administrators to take enforcement action as quickly and efficiently as possible, we would ask each investor to vote in favour of the following resolution (defined terms used in the wording of the resolution have the meanings given to them in the Terms and Conditions):
“I hereby authorise each Collateral Group Company (acting by the Joint Administrators, where applicable) to take such enforcement or other collection action as they deem necessary in respect of any or all of the outstanding loans in which I have participated as an investor through the Platform, including, without limitation, by appointing one or more receivers to the properties in question with a view to those properties being sold. I also ratify any such enforcement or collection action which any Collateral Group Company may already have taken, following the appointment of the Joint Administrators on 27 April 2018 but prior to the date of this resolution, to such end.”
If you are in agreement with the above resolution, please respond to this email, saying “I agree to the Lender Resolution sent to investors on 21 December 2018” (or words to that effect).
If the Joint Administrators do not receive a positive response from a sufficient majority of investors, it will be necessary for them to make a court application as a prelude to enforcement action. Any court application will add additional cost and delay to the enforcement process, most likely resulting in a slower and reduced return of funds to investors. We would therefore request each investor’s assistance and a positive response to the Lender Resolution by no later than Friday 11 January.
As with all communications from the Joint Administrators, a copy of this letter will be uploaded to the dedicated website below:
Please contact [email protected] should you have any queries in relation to the above. Yours faithfully For and on behalf of The Companies Shane Crooks Joint Administrator Authorised by the Institute of Chartered Accountants in England & Wales in the UK"
"We are happy to advise that we have received responses approving the ‘Lender Resolution’ from approximately 86% of investors, in terms of value of investments. This has certainly been an encouraging response. Whilst we would expect that this translates as approval to proceed with enforcement in respect of the majority of the loans, it will of course be necessary to calculate what percentage of value this represents for each specific loan."
FYI - the required threshold as per the Collateral platform terms is that 75% of investors in a loan must agree to take enforcement action.
A few other updates:
- The next Creditors Committee meeting is confirmed for the 12th of March.
- Good progress is being made on data recovery: "we are now at the stage where a significant majority of investors’ detailed portfolio analysis as extracted from the database reconciles with the information initially provided to us by Refresh Recovery"
- BDO will shortly be uploading a note on their website informing investors that a tax statement for 2017/2018 isn't available which you may forward to HMRC when submitting your tax returns. BDO are unable to offer any specific tax advice.
- Taking into account various factors, information regarding progress on recoveries will be kept to the standard reporting schedule rather than details being uploaded to the BDO website.
“THIS DOCUMENT IS PUBLISHED BY THE JOINT ADMINISTRATORS ON BEHALF OF THE COMPANIES. THE JOINT ADMINISTRATORS ACT AS AGENTS OF THE COMPANIES AND WITHOUT PERSONAL LIABILITY
Collateral (UK) Limited Collateral Sales Limited Collateral Security Trustee Limited (together, “the Companies”) – All in Administration
To All Investors
As the deadline for the submission of self-assessment tax returns is approaching, the Joint Administrators would confirm that, due to the incomplete nature of the Companies’ books and records, the Companies are not in a position to produce a summary tax statement in respect of interest received by each investor for the 2017/18 tax year.
The Joint Administrators are unable to provide tax advice to investors which, in any case, will depend on each individual investor’s specific circumstances. All investors should therefore obtain their own independent tax advice if they have any queries in relation to their tax returns. Investors may present this notice to HMRC to confirm that no summary tax statements for their investments can be generated from the Companies’ records.