Bondmason and Collateral

Let’s face it it was pretty high risk to invest in a platform with only two years or less trading. Difficult to see how you could do any real did with that track record

The good news is that I would expect the loans to be repaid as usual, with similar bad debt to before, as the administrator will be winding down the loan book. Should be ok, therefore. However I agree some reassurance on dd should be forthcoming as this is part of BM’s USP!

Be interesting to know if BM are still as confident given the latest statement from the collateral administrators which says there have been little in the way of repayments and issues with data being deleted.

mrclondon - we have made offers to BDO (and the previous administrator) to assist in any way required to facilitate the best outcome for our clients and investors in Collateral loans. This includes acting as a liason and/or representation for other investors (which may end up as creditors) - which I agree would be a good idea.

We understand that BDO are still trying to 'get their arms around' the data. We've specifically offered to supply our own detailed records - we retain information on all loans we review, including those we don't invest in - and assist with reconciliations of the loan book.

We will wait to see what contributions we can provide to the process - but remain committed to achieving the best outcome possible.

Accepting position as Creditors: we are monitoring the announcements from BDO; and we reserve our right to consider our position in the fullness of time, based on the development of the process.

What is being done: we have a complete and accurate record of all investment positions and security. We remain watchful over the process (and have offered to engage directly). We expect an appropriate outcome based on the investments made and their performance; and will fight to ensure that the outcome is inline with these expectations.

In short: the process needs to be allowed to run its course, and BDO needs to be supported to ensure they have the best chance of delivering the best outcome, and held accountable for the same. We remain an engaged, watchful and keen participant. We have experience of managing, and being involved in, administration processes; and we will use our experience for the benefit of our clients.

We (BondMason) are very happy to serve on the Creditors Committee. We will write to BDO as instructed to volunteer ourselves.

If anyone else would like to support our nomination, please also write to BDO and state that you would like 'BondMason Client Ltd' to represent you on the Creditors Committee.

Assuming we are successfully nominated, we will need to consider the best way to ensure your views are covered, and to report back. We can disucss this collectively later.

stevefindlay

Many thanks for posting this Steve.

From the R3 Guide for Creditors, regarding a Creditors' Committee, a company "must be represented by an individual who will be given a letter of authority, by the company, enabling them to act on the company’s behalf". Also "you cannot be represented by a body corporate".

If any Collateral investors wish to nominate the person put forward by BondMason to act as their representative, what name and address should they put? That person will need to have submitted their consent form to be a member of the committee.

The R3 Guide says "You cannot be on the Committee as a creditor in your own right and act for another creditor at the same time." It may be helpful to obtain clarification whether the individual representing BondMason can also represent other creditors.


For investors, looking at the nomination form in Appendix 10 of the Administrators' Proposals (pdf page 52), the form must be accompanied by a signed Proof of Debt claim form unless one has already been submitted. From the latest FAQ, the forms can be returned either by post, or email to investorcollateral@bdo.co.uk, to arrive no later than 4pm on Wednesday 4 July.

The claim form is solely for voting purposes at this stage. The Proposals say the claim amount "will not in any way affect your rights to recover any sums owing" (p16).

It seems we can now quantify our exposure to Collateral via Bondmason as in the recovery tab certain loans are marked "Jul 2018: The lending platform is in Administration."



For me that is 7 loan parts with total value 5.9% a single BM investment end 2016. This higher than the ca 4% loan book share implied by BM declared 1.69% of total platform investments being in Collateral loans. (* 4% after adjusting by stats page figure that 58% repaid as of Mar 2018 or ca £0.59m of £13.8m). The loans dated Apr-Oct 2017 all 12% except one each 13% & 14% and all show interest received amounts broadly consistent with Collateral regular payouts.



Whilst disappointed to have more exposure than had expected, overall am reassured if broadly in line with BM stats, claims re platform limits and to see the loans are accounted for appropriately within the black-box system.

I have far larger direct investment in Collateral so an indirect benefit if BM turn out to have more reason to push for a better outcome.



Maybe others can share similar figures for reference although harder if investment level varied or did not completely span the Collateral property lending period.



(* figures may be incorrect as the stats page vague. also depends on assumption that all and only Collateral loans are referred to by this "platform in administration" tag)