BDO Joint Administrators’ proposals to creditors - June 21
Jun 24, 2018 19:39:44 GMT
min, Monetus, and 5 more like this
Post by ozboy on Jun 24, 2018 19:39:44 GMT
I have spent the best part of this wonderfully sunny afternoon indoors wading through the BDO Report. I urge all on here who have not yet read the Report to do so asap, even if you think you might not understand much of it (I don’t) you nonetheless MUST read it and try.
I have not yet read through last night’s and today’s postings on here so apologies for any repetition. My initial thoughts among too many to fully list are:-
1 / BDO are using us as lab rats to go through their learning curve at vast Investors’ expense so BDO can get to grips with the basics of P2P.
1a / Running the Administration from London is unacceptable, BDO’s London Fees are broadly over 1/3rd more than their Manchester Rates as per their own schedule.
2 / Why does BDO have to revalue all the assets which seems their stated intention. The assets will sell for whatever they achieve, revaluing is an expensive and totally unnecessary exercise.
3 / The Directors of Collateral are personally liable for ALL the expense of not leaving the records in a decent, fit and proper state. Under 12.1 - “You will note that total time costs for the period to 15 June 2018 total £102,417.53.” - this is the cost to date of trying to get to the basic starting position of even having a decent set of books/records which should have been left behind as a basic given and legal requirement. Not paying the bills to maintain the records and accounts is more than disingenuous and I believe the Courts will think so too. The FCA are surely culpable also in not ensuring the security of the records……… “they [the Directors] advised that the electronic platform had been decommissioned during March 2018 due to non-payment of outstanding bills; they did not therefore consider that the Joint Administrators would be able to recover the platform or the underlying data.”
and
“9. Investigations The Joint Administrators have a duty to investigate the affairs of the Companies to establish if there are any actions that can be pursued for the benefit of investors and creditors as a whole, including investigations into the conduct of the Companies’ officers (including de facto and shadow officers).”
4 / The Report seems to me contradictory in that it says RR were removed because “Under section 362A of the Financial Services and Markets Act 2000, an administrator cannot be appointed over a company carrying out regulated activities without the prior consent of the FCA.“ . Doesn’t this statement confirm that Collateral were Regulated? Yet elsewhere in the Report: “As has been widely-reported, there had historically been a protracted dispute between the Companies and the UK Financial Conduct Authority (the “FCA”) as to whether the Companies were carrying out a regulated activity, and therefore whether they required relevant permissions from the FCA. “
We are going to need some VERY savvy people on the Creditor’s Committee or we’re going to be gutted, filleted and thoroughly cooked my fellow Investors.
There are battles ahead methinks, I thank you.
OzBoy.
I have not yet read through last night’s and today’s postings on here so apologies for any repetition. My initial thoughts among too many to fully list are:-
1 / BDO are using us as lab rats to go through their learning curve at vast Investors’ expense so BDO can get to grips with the basics of P2P.
1a / Running the Administration from London is unacceptable, BDO’s London Fees are broadly over 1/3rd more than their Manchester Rates as per their own schedule.
2 / Why does BDO have to revalue all the assets which seems their stated intention. The assets will sell for whatever they achieve, revaluing is an expensive and totally unnecessary exercise.
3 / The Directors of Collateral are personally liable for ALL the expense of not leaving the records in a decent, fit and proper state. Under 12.1 - “You will note that total time costs for the period to 15 June 2018 total £102,417.53.” - this is the cost to date of trying to get to the basic starting position of even having a decent set of books/records which should have been left behind as a basic given and legal requirement. Not paying the bills to maintain the records and accounts is more than disingenuous and I believe the Courts will think so too. The FCA are surely culpable also in not ensuring the security of the records……… “they [the Directors] advised that the electronic platform had been decommissioned during March 2018 due to non-payment of outstanding bills; they did not therefore consider that the Joint Administrators would be able to recover the platform or the underlying data.”
and
“9. Investigations The Joint Administrators have a duty to investigate the affairs of the Companies to establish if there are any actions that can be pursued for the benefit of investors and creditors as a whole, including investigations into the conduct of the Companies’ officers (including de facto and shadow officers).”
4 / The Report seems to me contradictory in that it says RR were removed because “Under section 362A of the Financial Services and Markets Act 2000, an administrator cannot be appointed over a company carrying out regulated activities without the prior consent of the FCA.“ . Doesn’t this statement confirm that Collateral were Regulated? Yet elsewhere in the Report: “As has been widely-reported, there had historically been a protracted dispute between the Companies and the UK Financial Conduct Authority (the “FCA”) as to whether the Companies were carrying out a regulated activity, and therefore whether they required relevant permissions from the FCA. “
We are going to need some VERY savvy people on the Creditor’s Committee or we’re going to be gutted, filleted and thoroughly cooked my fellow Investors.
There are battles ahead methinks, I thank you.
OzBoy.
