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Post by mrclondon on May 5, 2018 13:40:50 GMT
To expand on mrc's last sentence. Presumably 'running the loan book' also involves managing the security, both physical items and charges on property. A borrower is not going to repay their principal without the release of their security, and there is no-one to do that, unless that can continue under administration. At present, lending continues past term without any obligation to pay extra interest. If the loans are short, then perhaps the winding down of loans is best done under administration. Agreed. If, as hypothesised by Refresh Recovery, some of the unaccounted for cash relating to the undrawn loans has been released (by COL) to other borrowers against other security (e.g. Chesterfield cash to Bolton) then the winding down of some loans may involve complications and legal processes that no third party would volunteer to take onboard. (Imagine how any short fall in the realisation of Bolton's security would be matched to lenders, if some of the cash is attributable to Chesterfield lenders) Whilst Refresh Recovery claimed to have 15 expressions of interest for the loan book, I'd suggest most of these will be just tentative enquiries, and with the exception of Bond Mason, will have done less due dillgence on COL's loanbook than many forum members. In the absense of future illumination from BDO on this matter, I think it sensible to assume there will be no third party involvement in the wind down, other than (hopefully) some straightforward offers from miscellaneous p2p platforms to refinance particular loans using their own independent processes.
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shimself
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Post by shimself on May 5, 2018 17:58:08 GMT
Whilst Refresh Recovery claimed to have 15 expressions of interest for the loan book, I'd suggest most of these will be just tentative enquiries, and with the exception of Bond Mason, will have done less due dillgence on COL's loanbook than many forum members. In the absense of future illumination from BDO on this matter, I think it sensible to assume there will be no third party involvement in the wind down, other than (hopefully) some straightforward offers from miscellaneous p2p platforms to refinance particular loans using their own independent processes. Platforms are very keen on scaling up, size of loanbook. (We aren't, we want safe profitable loans, but they want size). So if a platform could jump their loanbook with one single step, and seeing as afaik COL's loan book is at worst par for the course, I think a number would be very willing to buy.
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tx
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Post by tx on May 5, 2018 21:01:22 GMT
Did anyone emailed the “investorcillateral@bdo” email? I sent a very simple email to register my lender interest after the high court, but never heard anything back. Just wonder if I am the only one didn’t hear anything back from BDO’s designated investor email address? Thanks.
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p2pete
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Post by p2pete on May 5, 2018 21:55:19 GMT
That's not the correct email address and in any case you don't need to email them to register an interest.
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pikestaff
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Post by pikestaff on May 6, 2018 8:29:44 GMT
SALE OF RIGHT TO RUN THE LOAN BOOK I think the spread on most platforms that run loan books is 2% and up, excluding any initial arrangement fees. Bondmason's is smaller but they don't run a loan book at all, they invest in other peoples loans. If Col is in line with this it should be sufficient, on an ongoing basis, for someone already in the business to take over the running of the loan book. However, this assumes the loan book is in decent shape and not expected to generate an abnormal level of defaults (which would reduce their income and add costs). The majority, possibly all, of COL's loans were on the retained interest (and margin) model. However, where we are today, the majority of COL's loans have already reached their notional maturity date, and without an extension (believed to be impossible as the business is not regulated) there is no incoming interest+margin, unless/until the loans refinance in full covering accrued interest + margin since the notional maturity date. By the end of May 90% of my COL loans (by value) will have reached their maturity date, and by the end of July 100%. There is no evidence at CH that any of the property loans have refinanced in the last 2 months, although its possible some of the smaller ones may have on a cash basis. "Running the loan book" is, in this case, primarily an activity of facilitating the refinance / redemption of overdue loans. OK. That means a third party would need to be paid to take over the running of the loan book. It does not necessarily mean it can't or won't happen, but I doubt that there will be real interest unless the third party expects to get something else out of it too, like having the inside track for refinancing loans onto their own platform.
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ptr120
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Post by ptr120 on May 6, 2018 9:13:31 GMT
In terms of 'taking over the loan book, my feeling is that what those involved really mean is refinancing a 'good' loan on to another platform - potentially waiving the upfront fee so that the borrower isn't unduly impacted. The benefit for the other platform being some ongoing margin, and the ability to expand their loan book.
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travolta
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Post by travolta on May 6, 2018 14:08:37 GMT
Did anyone emailed the “investorcillateral@bdo” email? I sent a very simple email to register my lender interest after the high court, but never heard anything back. Just wonder if I am the only one didn’t hear anything back from BDO’s designated investor email address? Thanks. Moi non plus.....but try investorcollateral@bdo.co.uk
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daveb4
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Post by daveb4 on May 6, 2018 14:39:07 GMT
A large portion of cases have had to or should be renewing and I am sure were proactive (unless hoping they could get out of paying any more interest) in trying to move elsewhere.
Anyone seen any of the deals end up on any other platform yet?
You would think some platforms would certainly be keen to cherry pick to help BDO, knowing us investors would be happy with a reduced rate (eg desperate) and they could take the difference, a small arrangement fee and potential new customers?
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Post by GSV3MIaC on May 6, 2018 16:00:42 GMT
But how are you going to get the Collateral charges removed from your CH record when there is probably nobody currently able to do that? I suspect the borrowers are just as stuck as the lenders, but maybe less upset about it.
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Post by elephantrosie on May 7, 2018 20:01:35 GMT
It would be great if anyone here knows one of the borrowers personally to find out what communication the borrowers had from their end.
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withnell
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Post by withnell on May 8, 2018 11:19:55 GMT
Did anyone emailed the “investorcillateral@bdo” email? I sent a very simple email to register my lender interest after the high court, but never heard anything back. Just wonder if I am the only one didn’t hear anything back from BDO’s designated investor email address? Thanks. Moi non plus.....but try investorcollateral@bdo.co.uk I forwarded them the email i sent jessica (when RR decided that investors were now creditors) and didn't get a reply, think they're focusing on the work in hand
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snowmobile
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Post by snowmobile on May 9, 2018 7:25:05 GMT
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Post by bracknellboy on May 9, 2018 7:57:06 GMT
Yes I spotted this in an article in a day or two old copy of the the times, but only spotted it this morning. As I'm not with collateral, I'm not sure how comparative the situation is, but I noted the times commentary on insufficient funds to cover administration costs and the potential (not yet allowed as I read it) that they may be allowed to draw on investors funds to cover the costs.
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huxs
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Post by huxs on May 9, 2018 8:52:20 GMT
Yes I spotted this in an article in a day or two old copy of the the times, but only spotted it this morning. As I'm not with collateral, I'm not sure how comparative the situation is, but I noted the times commentary on insufficient funds to cover administration costs and the potential (not yet allowed as I read it) that they may be allowed to draw on investors funds to cover the costs. Surely the difference is that we did not invest in Collateral but in loans to specific borrowers, surely an administrator cannot dip into this money? Same goes for our Cash sitting with Collateral this is client money that should be protected by the FCA guarantees ? Maybe I am being naïve ?
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ilmoro
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Post by ilmoro on May 9, 2018 9:12:56 GMT
Yes I spotted this in an article in a day or two old copy of the the times, but only spotted it this morning. As I'm not with collateral, I'm not sure how comparative the situation is, but I noted the times commentary on insufficient funds to cover administration costs and the potential (not yet allowed as I read it) that they may be allowed to draw on investors funds to cover the costs. Surely the difference is that we did not invest in Collateral but in loans to specific borrowers, surely an administrator cannot dip into this money? Same goes for our Cash sitting with Collateral this is client money that should be protected by the FCA guarantees ? Maybe I am being naïve ? Collateral was unregulated so the status of lender cash, loan contracts etc needs to be determined in that context. They werent authorised to make article 36H P2P laons or hold client money. The FCA guarentees nothing, they are a regulator.
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