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Post by rhea117 on Jun 5, 2019 11:10:07 GMT
The Beaufort case is quite different, can P2P loans be considered similar 'trust assets', or will this be another test case if the administrators go down that route? I don't know exactly what the relationship was between Beaufort, their investors and the investors invested funds. Trust Assets seem to be quite complicated (to me). That probably depends on how you define SSSH which holds the assets. IIRC it wasn't set up as a Trust but is described as a Trustee. I don't know but elsewhere a former IP has equated the two. This statement is still on their website: “We hold all our lenders’ money in a segregated client account with Barclays Bank plc, so that your money is kept separate from our other assets. Any amounts, which are due to you from the proceeds of a sale of property (or any other security) will be held on trust for you and paid into the segregated client account. If Lendy were to become insolvent, an insolvency practitioner would be appointed and would distribute the funds in the segregated client account back to lenders. Lenders’ money in the segregated client account would not be distributed to our other creditors”
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ilmoro
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Post by ilmoro on Jun 5, 2019 11:35:04 GMT
That probably depends on how you define SSSH which holds the assets. IIRC it wasn't set up as a Trust but is described as a Trustee. I don't know but elsewhere a former IP has equated the two. This statement is still on their website: “We hold all our lenders’ money in a segregated client account with Barclays Bank plc, so that your money is kept separate from our other assets. Any amounts, which are due to you from the proceeds of a sale of property (or any other security) will be held on trust for you and paid into the segregated client account. If Lendy were to become insolvent, an insolvency practitioner would be appointed and would distribute the funds in the segregated client account back to lenders. Lenders’ money in the segregated client account would not be distributed to our other creditors” Yes, protected from other creditors but not per se from being used to pay administrator fees as they aren't classes as creditors AIUI. Also given current legal consultations I would be reluctant to take anything said by Lendy as strong evidence for anything.
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pi
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Post by pi on Jun 5, 2019 11:38:31 GMT
p2pindependentforum.com/thread/14926/role-administrator-orderly-wind-rules"There's an important point here to be made. Under 36H agreements then: the investor has lent directly to the borrower this is a legal contract and the capital is rightfully the investors', not the platform's, as is the interest agreed to be paid the platform has no legal right to the money, except for any servicing fees the borrower pays to the platform the only thing that should affect this is borrower default and subsequent recovery processes an Administrator can only use funds directly attributable to the platform.
Normally there is a servicing fee being paid by the borrower to a platform. Example, the borrower pays 12% and the investors get 10%, then the platform is getting 2% servicing fee. This fee could be used by the administrator to either cover off creditors or to service the loan book. However, the 10% should be protected under 36H.
This is my personal view of the Administration processes being faced by any P2P lender. This shouldn't be construed as advice to any affected investors. " Not sure how true this is from andrewh
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michaelc
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Post by michaelc on Jun 5, 2019 11:59:27 GMT
Isn't it actually good news that the amount owed is in the hundreds of millions?
I'm thinking that administrators fees, as high as they are, should still be a very small fraction of that total? Or is that just wishful thinking?
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Post by rhea117 on Jun 5, 2019 12:12:10 GMT
Isn't it actually good news that the amount owed is in the hundreds of millions? I'm thinking that administrators fees, as high as they are, should still be a very small fraction of that total? Or is that just wishful thinking? I hope so too. Even at £1,000 per hour for a partner, for them to bill 1,000 hours is a lot of work. A £1m fee as a % due back is going to be .......
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Post by spareapennyor2 on Jun 5, 2019 12:18:30 GMT
all depends how much is recovered
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Mucho P2P
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Post by Mucho P2P on Jun 7, 2019 20:09:55 GMT
I read somewhere that administrators can only take money from what's owed to the company (Lendy) so out of Lendy fees not from client's money which is lend to borrowers. Is that not correct? Without going into lengthy legal explanations as to why, Administrators can take capital out of ring-fenced accounts should they deem the need to do so. They are in 100% control, so our best chances at the moment are in RSM reasonableness and in their ability of tracing and clawing back capital should any have been used/transferred unlawfully.
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adrianc
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Post by adrianc on Jun 7, 2019 21:48:08 GMT
Without going into lengthy legal explanations as to why, Administrators can take capital out of ring-fenced accounts should they deem the need to do so. I can't help feeling that's a bit of a broad-brush statement... Maybe a tidge more detail would be useful?
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ilmoro
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Post by ilmoro on Jun 8, 2019 0:21:38 GMT
Without going into lengthy legal explanations as to why, Administrators can take capital out of ring-fenced accounts should they deem the need to do so. I can't help feeling that's a bit of a broad-brush statement... Maybe a tidge more detail would be useful? Have a look at Beaufort Secirities administration.
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Post by star dust on Oct 29, 2019 11:04:53 GMT
Just a bump to say that I have updated the table here - p2pindependentforum.com/post/329913/thread with the interim distribution payments so far. I will attempt to keep it updated, but as I am in few loans, please let me know in thread or PM me if I miss something. Some of the investor numbers seem to have changed slightly on the RSM repaid loans, I wondered if this were anything to do with Lendy wealth, but may also be a result of AML checks I guess. |
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benaj
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Post by benaj on Apr 10, 2021 9:53:09 GMT
Is anyone keeping track how much capital been returned to lender since lendy went into administration?
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ilmoro
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Post by ilmoro on Apr 10, 2021 11:24:18 GMT
Is anyone keeping track how much capital been returned to lender since lendy went into administration? Yes, on LAG FB there is table listing all the recoveries distributed, £17.3m
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toffeeboy
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Post by toffeeboy on Apr 13, 2021 17:02:27 GMT
Is anyone keeping track how much capital been returned to lender since lendy went into administration? More important than how much has been returned is how much is being withheld awaiting the outcome of the court case regarding the waterfall.
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ilmoro
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Post by ilmoro on Apr 13, 2021 21:34:13 GMT
Is anyone keeping track how much capital been returned to lender since lendy went into administration? More important than how much has been returned is how much is being withheld awaiting the outcome of the court case regarding the waterfall. Well in theory, based on the same source, about £7m
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Post by gramsky on Apr 14, 2021 8:36:29 GMT
More important than how much has been returned is how much is being withheld awaiting the outcome of the court case regarding the waterfall. Well in theory, based on the same source, about £7m Do we know what the progress is with the court case?
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