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Post by polonius on Jun 8, 2018 10:18:16 GMT
I understood how the FCA could go to court to argue that the appointment of the original administrator was invalid. I never really understood how they were able to pick one firm out of the entire industry and get the court to order that they are given the job. It all looks like a very cosy little club and I would have thought that the process should have been put out to competitive tender by the FCA because lots of suitably qualified firms would have tendered for the work and set out their hourly rates etc and I am sure it wasn't necessary for a very expensive West End of London outfit to be put on the case which is after all of a fairly minimal size in the grand scheme of things. It could well be that the fees payable are disproportionate to the size of the recovery. This role does not have to be performed by a big central London outfit especially giving it involves a northwest business and considering that investors money is at stake and that there are practices in other parts of the country whose fee levels are a lot lower. It would have made the whole process a lot more transparent if there had been a tendering exercise. Perhaps a little unfair about locations. BDO boasts of its strong regional presence across the UK and their huge Manchester office in Spinningfields is less than 3 miles from Collateral's offices in the Blue Tower
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justsaying
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Post by justsaying on Jun 8, 2018 11:42:13 GMT
So it does seem things are happening although it is not being formally communicated to investors - there appears to be the refinance of COLL's BL00073 with FS from what I have just read on the FS board?
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Post by mrclondon on Jun 8, 2018 13:09:21 GMT
So it does seem things are happening although it is not being formally communicated to investors - there appears to be the refinance of COLL's BL00073 with FS from what I have just read on the FS board? Yes, its 62% filled as I type. FS loan origination is significantly higher than other 10%+ yield platforms, and there are a few other new loans currently listed on FS competing for lender funds so its likely to take a week or more to fill. However, for loans of this size (despite the increase over the COL outstanding balance) it is practically unheard of for them not to fill eventually, and FS have access to underwriter funds if required.
(There are currently 7 loans on the FS PM totaling over £3.5m, split 3 x new / 2 x renewal / 1 x new tranche / 1 x renewal + new tranche )
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star dust
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Post by star dust on Jun 8, 2018 14:34:00 GMT
I don't lend on FS and the only information I have is what has appeared on this forum, but it certainly appears to be reasonable news. Not being on FS I have no idea of the draw-down process, but if this loan does draw down then at least it signifies the Administrators have enough grip of the situation to start allowing the release of charges.
Although I would hope otherwise, I would not be surprised if there is still little outward sign of progress or investors funds being returned 'imminently' thereafter though.
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Post by Butch Cassidy on Jun 8, 2018 15:02:28 GMT
...and yet they were ready to hit the ground running from what I recall one of them saying to a poster on here that attended the court hearing I very much doubt every minute of everyday is costing us money, realistically the time scale is not entirely in their hands. Yes by now they should and no doubt have reconciled who is due what. However I would take the appearance of one of the loans on FS as a positive sign that 'winding' up the loans is in action and ongoing. It takes as long as it takes. Communication is always a good thing, and maybe could be better but not if it adds unnecessary cost. I am not by nature particularly patient, I have however learnt that I can only control the controllable which in this instance is very little at this time. Whether the £500/hour administration clock is ticking or not is really irrelevant, the majority of my loans were going to fall due for repayment over the last 3 months & the £100's thousand's already repaid that should currently be sitting in lenders accounts is by definition not invested so MOST CERTAINLY IS COSTING US MONEY in terms of lost income, on top of the inherent uncertainty caused by lack of communication. BDO are in complete control of the administration process as well as the information flow that they release to interested parties & the sum total of communication with lenders so far has been woeful.
Whilst some of the development projects may take years to finalise the vast majority of loans should be resolved within weeks & as such lenders should already know by now the expected timetable for these initial disbursements & the status of their remaining loan holdings, this is a tiny loanbook & the basic reconciliation & notifications ought to have been completed & communicated to lenders weeks ago.
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11025
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Post by 11025 on Jun 8, 2018 16:36:25 GMT
This thread has just reminded me of a thought I had a while ago , would anyone imagine the £100's of thousands in interest payments and repayments are going into an account that attracts interest ? I know we as Investors/Lenders are not entitled but it would be pretty depressing all round if the money just sits around month on month when there are big admin bills to be paid
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gc
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Post by gc on Jun 8, 2018 21:15:39 GMT
This thread has just reminded me of a thought I had a while ago , would anyone imagine the £100's of thousands in interest payments and repayments are going into an account that attracts interest ? I know we as Investors/Lenders are not entitled but it would be pretty depressing all round if the money just sits around month on month when there are big admin bills to be paid I thought that a while back also. I would imagine the interest would be used to pay off outstanding debts (though probably nowhere near enough) as at this point, I would think most people just want their funds back, interest at this point doesn't even come into play, in my mind anyway.
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11025
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Post by 11025 on Jun 8, 2018 21:18:10 GMT
This thread has just reminded me of a thought I had a while ago , would anyone imagine the £100's of thousands in interest payments and repayments are going into an account that attracts interest ? I know we as Investors/Lenders are not entitled but it would be pretty depressing all round if the money just sits around month on month when there are big admin bills to be paid I thought that a while back also. I would imagine the interest would be used to pay off outstanding debts (though probably nowhere near enough) as at this point, I would think most people just want their funds back, interest at this point doesn't even come into play, in my mind anyway. I think you misunderstood my angle , i was hoping use of it would prevent our capital getting eaten into ...
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gc
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Post by gc on Jun 8, 2018 22:06:26 GMT
Oh believe me, I am hoping that also. I probably explained myself wrong.
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averageguy
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Post by averageguy on Jun 8, 2018 22:21:36 GMT
This thread has just reminded me of a thought I had a while ago , would anyone imagine the £100's of thousands in interest payments and repayments are going into an account that attracts interest ? I know we as Investors/Lenders are not entitled but it would be pretty depressing all round if the money just sits around month on month when there are big admin bills to be paid They could invest in P2P with Lendy (facepalm)
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baz657
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Post by baz657 on Jun 9, 2018 8:35:46 GMT
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Post by Butch Cassidy on Jun 9, 2018 10:06:23 GMT
The only loans where I could see problems arising would be the large development projects, however these were the most risky & may well have stumbled into problems without any help from the administration.
I actually believe that lenders ought to have had some money returned already because due to the nature of the loanbook (vast majority of loans were small asset backed bling/vehicles & residential flats/property) & it's profile, many loans should already have fallen due &/or been refinanced/repaid, the administrators should already be sat on a large cash pile (as borrowers were informed by RR in March that repayments would be required) but due to BDO's woeful lack of communication & clear disincentive to resolve the loans quickly (whilst ringing up £500/hr shuffling paperwork) lenders are still in the complete dark as to any actual progress or timescale for resolution - fairly disgraceful corporate incompetence IMO.
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Post by mrclondon on Jun 9, 2018 11:15:19 GMT
There is no evidence at companies house that any of the property loans have refinanced. This is not 100% conclusive as there may have been cash redemptions as opposed to refinances.
BL00073 is the first tangible evidence that a refinance is underway.
For many of the borrowers p2p is the last chance of finance, and to expect they can suddenly refinance to a mainstream bank is somewhat fanciful. One of the borrowers has long running refinance sagas on overdue loans on both MT and L.
Given its now just two weeks until we will have the administrators proposals, its probably best just to bite tongues for a while longer and let BDO do their job. I find it hard to visual a circumstance where the administrator would commence a distribution of cash (even that in a client account) before their proposals have been approved. That said, I am disappointed that their promise of an updated FAQ as an interim update which they promised in their email 2 weeks ago hasn't materialised.
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upland
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Post by upland on Jun 9, 2018 12:37:59 GMT
I think that it will be sad for the p2p industry if the losses are significant as it will put into doubt the "living will" concept . This is the first real significant UK failure and a good outcome is essential for the health of the other similar players. I dont feel that it has gone that well to date. Waiting at present seems the best option.
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archie
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Post by archie on Jun 9, 2018 12:42:33 GMT
Living will should be fine for those with full FCA authorisation as the implementation would have been approved as part of the application.
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