star dust
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Post by star dust on Mar 1, 2018 15:17:31 GMT
Mod Hat On/ For ease of reference I've pinned this thread. If BDO release a report on 22 nd June please keep specific questions about the report here, and general discussion or comments about it in an alternate thread. I have just created a specific thread for the BDO report - whenever that may actually appear. Thanks all for your collaboration
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Post by moorfields on Jun 19, 2018 16:45:12 GMT
Afternoon
Here at Moorfields Advisory Ltd, a firm of Insolvency Practitioners who have experience in advising P2P firms, we have been contacted by MoneyThing and have been discussing internally the difficulties lenders / creditors potentially face following the administration of Collateral UK Ltd. We are advised that the current Administrators, BDO, are proposing to circulate a report on 22 June 2018 and from the posts we have seen to date, creditors will be taking a keen interest in their latest update. We would be willing in the first instance to review the report, then answer questions that might arise as common themes. Therefore, please raise your queries via this thread between 22 June 2018 and 29 June 2018, after which we will be happy to summarise the report and answer those common concerns raised during that period.
We join MoneyThing in expressing our sympathy for the lenders’ situation and we hope to be able to provide some practical assistance. We can confirm that we will not charge for conducting this review.
Regards
Moorfields Advisory Ltd
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ilmoro
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'Wondering which of the bu***rs to blame, and watching for pigs on the wing.' - Pink Floyd
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Post by ilmoro on Jun 19, 2018 17:23:05 GMT
So what do your lawyers say in regards to the whole unauthorised, validity of P2P agreements, creditors question? That seems to be the key question.
Jumping the gun slightly I know.
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p2pete
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Post by p2pete on Jun 19, 2018 18:31:48 GMT
Here at Moorfields Advisory Ltd, a firm of Insolvency Practitioners who have experience in advising P2P firms, we have been contacted by MoneyThing and have been discussing internally the difficulties lenders / creditors potentially face following the administration of Collateral UK Ltd. We are advised that the current Administrators, BDO, are proposing to circulate a report on 22 June 2018 and from the posts we have seen to date, creditors will be taking a keen interest in their latest update. We would be willing in the first instance to review the report, then answer questions that might arise as common themes. Therefore, please raise your queries via this thread between 22 June 2018 and 29 June 2018, after which we will be happy to summarise the report and answer those common concerns raised during that period. Thanks, that's great. Given it's so close it's probably best to leave questions until after 22nd. However, a lot of questions may stem from the facts that: 1. At the point lenders invested, Collateral claimed to be FCA authorised. 2. At the point lenders invested, the FCA website stated that Collateral UK was FCA authorised. ... then it turned out they weren't. So any stance that BDO take that is based on the fact that Collateral were not FCA authorised is going to be irksome. So it's probably best if you start to formulate your opinion on whether lenders have a leg to stand on the "whole unauthorised, validity of P2P agreements, creditors question" as ilmoro put it.
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elliotn
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Post by elliotn on Jun 19, 2018 22:51:20 GMT
If business profits of, say, 3-400k were taken from the client accounts and traceability compromised would that preclude their use in future loan repayments/recoveries ie if individual lender repayments could not be facilitated by these accounts would this also lead to treatment as a pooled investment?
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withnell
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Post by withnell on Jun 22, 2018 5:25:41 GMT
Clearly BDO are struggling to get hold of individual investor records beyond total balance, but the proposals don't make any reference to those who have evidence of their holdings and talk as if a blended distribution will occur.
As someone with a clear record of the loans I invested towards, what is my position regards a targeted distribution based on my own contracts?
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SteveT
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Post by SteveT on Jun 22, 2018 5:30:03 GMT
Clearly BDO are struggling to get hold of individual investor records beyond total balance, but the proposals don't make any reference to those who have evidence of their holdings and talk as if a blended distribution will occur. As someone with a clear record of the loans I invested towards, what is my position regards a targeted distribution based on my own contracts? Minimal. They will either be able to reassemble / reconcile lender records across the board, and so allocate payments accordingly, or they won't, in which case there's little option but to treat all lenders as a single "pot". Individual lenders' own records will cut no ice, IMHO. I'd say the odds of the former look much brighter this morning, but then I'm an optimist!
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p2pete
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Post by p2pete on Jun 23, 2018 13:18:46 GMT
moorfields As you know, the FCA made a court application early March and between the hearings on 16th March and 27th April, due to restriction placed by the court, nobody was able to protect investors and in particular safeguard our data. BDO have said "the electronic platform had been decommissioned during March 2018 due to non-payment of outstanding bills". In addition, BDO say that attempts to retrieve the data involved "protracted correspondence and with the assistance of our lawyers and my firm’s Forensic Technology team". In your opinion, is the FCA or anyone else liable for losses and/or expenses incurred due to the limbo situation between 16th March and 27th April where nobody (including the directors and administrators) was able to act to protect investors?
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Greenwood2
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Post by Greenwood2 on Jun 24, 2018 6:41:32 GMT
Or RR for not preserving the data prior to that?
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star dust
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Post by star dust on Jun 25, 2018 10:27:07 GMT
moorfields I have a few questions I hope you may be able to shed some light on:
1. Although to me it is unclear whether BDO are proposing a re-valuation of the entire loan book, or just the ‘chattels’ element, is there a legal or statutory argument for re-valuing if the business is being wound up rather than sold on?
2. Do BDO have an obligation to treat all investors fairly, for example, should they be distributing general information to everyone at once rather than giving advanced/ additional information to individual investors or their representatives? Are there any circumstances where such behaviour could be justified?
3. BDO have suggested that if you do not agree with their pre-filled proof of debt form you send it back “together with evidence in support of the amended claim”. There is much talk here of investors not having information, but also investors having very detailed information from Collateral site downloads /emails/ and bank statements etc, what in your view would be acceptable or legal “evidence” in such circumstances?
4. Will ‘creditors’ or investors who return their proof of debt form and or the nominate/voting form at Appendix 10 have their personal details either put in the public domain and/or released /shared with the members of the creditors committee thereafter?
5. If you choose not to become a ‘creditor’ even though you may be one i.e. you do not make a claim or send back a signed proof of debt form does this mean that your personal information will remain confidential?
6. What would happen if a majority* of investors disagreed with the Administrators proposals A and B? * However determined
7. Are there any tendering requirements either UK gov or EU for an insolvency ‘contract’ of this scale.
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elliotn
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Post by elliotn on Jun 25, 2018 12:33:41 GMT
If several million in undrawn funds not identified in the client accounts were actually provided to borrowers by the directors, possibly to unrelated developments, are these still deemed trust assets even though there is not (even an unregulated) agreement between lender and borrower for the use of these funds?
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Post by wiseclerk on Jun 25, 2018 12:41:28 GMT
+1 for point 7
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Post by mrclondon on Jun 25, 2018 23:16:59 GMT
It would be great if you could provide a few paragraphs to explain the Appendix 10 nomination form for the creditors committee in layman's terms.
- if more than 5 nominations are received by BDO, will BDO need to organise a vote for the places ? - if such a vote took place, would it be on a value weighted basis ? Would the nominees have the opportunity to put forward a personal statement prior to a vote ? How much personal detail would BDO typically release on the nominees ?
- if there are concerns that a (potential) nominee may not be appropriate (for whatever reason), what would be the best way of making this information public and/or making BDO aware ? - the nomination form has this line "Or, I nominate the following to act as a representative of the Creditors’ Committee:" is this to nominate another creditor (investor), or to nominate a representative to serve on behalf of the creditor returning the appendix 10 form, or something else ?
- at this stage is it possible to nominate a non creditor (non investor) to serve on the committee ?
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averageguy
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Post by averageguy on Jun 25, 2018 23:22:57 GMT
It would be great if you could provide a few paragraphs to explain the Appendix 10 nomination form for the creditors committee in layman's terms.
- if more than 5 nominations are received by BDO, will BDO need to organise a vote for the places ? - if such a vote took place, would it be on a value weighted basis ? Would the nominees have the opportunity to put forward a personal statement prior to a vote ? How much personal detail would BDO typically release on the nominees ?
- if there are concerns that a (potential) nominee may not be appropriate (for whatever reason), what would be the best way of making this information public and/or making BDO aware ? - the nomination form has this line "Or, I nominate the following to act as a representative of the Creditors’ Committee:" is this to nominate another creditor (investor), or to nominate a representative to serve on behalf of the creditor returning the appendix 10 form. - at this stage is it possible to nominate a non creditor (non investor) to serve on the committee ?
Do you know of someone who has been nominated who isn't appropriate?
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metoo
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Post by metoo on Jun 26, 2018 2:02:59 GMT
7. Are there any tendering requirements either UK gov or EU for an insolvency ‘contract’ of this scale.
Just to note that the Joint Administrators were appointed by the court. It was a decision by the judge at the hearing on 27 April.
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