IFISAcava
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Post by IFISAcava on Jun 21, 2018 22:58:12 GMT
Also, the amount we are owed will be increasing daily due to default interest accruing, so it is a moving figure surely? I think you can forget default interest. I can forget getting it paid, but if I am getting x% in the pound of whatever is not a trust asset (if they can get the details of trust assets sufficiently sorted to settle them separately) and/or whatever shortfall remains, I'd want the denominator correct! Also, if they are settling each trust asset (loan) separately then some may return enough to pay default interest and some not.
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ceejay
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Post by ceejay on Jun 21, 2018 22:58:50 GMT
Slightly puzzled that the bank accounts don't seem to have received any repayments from borrowers between the appointment date and now....the balances being the same...or have I read this wrongly Really? If you were a borrower and the "bank" went bust, would you continue to send payments into a black hole, uncertain that they'd be counted? Or would you sit on the money and wait till someone turned up with an official-looking piece of paper? Just think of the constructive stuff you could do with that cash in the meantime!
Not meaning to be cynical, in case it looks like that - just realistic.
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averageguy
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Post by averageguy on Jun 21, 2018 22:59:59 GMT
Slightly puzzled that the bank accounts don't seem to have received any repayments from borrowers between the appointment date and now....the balances being the same...or have I read this wrongly Really? If you were a borrower and the "bank" went bust, would you continue to send payments into a black hole, uncertain that they'd be counted? Or would you sit on the money and wait till someone turned up with an official-looking piece of paper? Just think of the constructive stuff you could do with that cash in the meantime!
Not meaning to be cynical, in case it looks like that - just realistic.
Oh I accept your point....but nothing? Not even one ..that surprises me..I thought the admins had written to all borrowers
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GeorgeT
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Post by GeorgeT on Jun 21, 2018 23:00:58 GMT
One point that stuck in my mind which I was not aware of was the statement that all loans are due for repayment by November 2018 which of course is only 5 months away. So that would seem to be the latest date at which recovery or repossession actions can be instigated against the Borrowers in the cases where they do not repay. So while this is likely to be a fairly long drawn out affair at least all loans can be called in before the end of the year.
Did anyone pick up on whether it is an inevitability that nobody will be repaid anything until the whole business is concluded or is there any indication in the proposals that investors could be repaid on an ad hoc basis as and when loans repay (assuming the individual investor exposure to individual loans is ascertained) and assuming there are sufficient ring fenced funds to cover the administrators' estimated fees.
I will read it all thoroughly tomorrow.
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btc
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Post by btc on Jun 21, 2018 23:16:57 GMT
£9,816.72 for advice.
£1,108 rail fares and
accommodation.
WOW
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Godanubis
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Post by Godanubis on Jun 21, 2018 23:26:44 GMT
Also, the amount we are owed will be increasing daily due to default interest accruing, so it is a moving figure surely? I think you can forget default interest. Default intrest is due by borrowers else their first charges won't be discharged and they won't get refinance and BDO take over their Properties or sell off non-property based assets 
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IFISAcava
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Post by IFISAcava on Jun 21, 2018 23:28:24 GMT
£9,816.72 for advice. £1,108 rail fares and accommodation. WOW Peak travel 1st class London to Manchester. About right.
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GeorgeT
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Post by GeorgeT on Jun 21, 2018 23:40:02 GMT
£9,816.72 for advice. £1,108 rail fares and accommodation. WOW Peak travel 1st class London to Manchester. About right. I worked in the public sector in a quite senior professional capacity and I used to be able to travel first class and then they changed the rules when all the cost cutting and efficiency savings came in and after that I was expected to travel standard class unless I could prove a business case for needing to go first class. But I guess this does not apply to people like this in the private sector who continue to go first class. I would not expect them to have to stand shoulder to shoulder on packed services and arrive at their destination feeling the worse for wear but at many times of the day I am led to believe that seats are widely available in standard class accommodation. I think it is fair to say that BDO will not be cramping their style to save investors a bit of money.
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ilmoro
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Post by ilmoro on Jun 21, 2018 23:53:10 GMT
Result of my skim read:
- detailed loan book data not yet secure, and although it seems likely that they will get hold of some form of it, this may well not be complete or uptodate - somewhere around 500k is missing, the gap between size of loan book and the sum of supposed investments [spirited away??]
- add to that 500+k admin costs, plus any shortfall in loan collection... from £17+M total book ...
- and I conclude that its likely that we'll (eventually!) get a substantial chunk, but not all, of our investments back. - volunteers sought for a creditors' committee!
Much chat here has been about whether we would be treated as simple creditors, but it seems to me that the report has a good plan here. It recognises our position as investors for whom COL was holding assets in trust, but ADDITIONALLY gives us rights as creditors to pursue the company (or its remnants) for anything we've lost. However, this last point is likely to be academic as there won't be quite enough cash to go round and there won't be anything left at all for unsecured creditors.
Just my thoughts...
What do you make of the bank accounts...the balances haven't moved since BDO appointment...no ones been paying any interest? Have I read this wrong Two points ... for loans with retained interest the money would have already been in the client account so the balances would not alter (payment would be administrative or allocation from borrower pot to individual lender pot not physical) Borrowers who did owe cash would be unlikely to sure of where to send it or whether it wouldn't just become an asset of the administration so are unlikely to have sent funds even if the wanted to.
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btc
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Post by btc on Jun 21, 2018 23:58:20 GMT
So will the fees be split evenly approx £565 or be based on the percentage of the amount invested?
Is anyone here in the 10% club?
Are we paying for the employee's matter? Should that be dealt with from the office bank account?
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Post by peerlessperil on Jun 21, 2018 23:59:16 GMT
On a first skim through this is at the better end of my expectations.
The assets seem to be present (even if the Directors were "safeguarding" some of the chattels), there is still the prospect of data recovery, the directors are present & communicating, the banks accounts have cash in them, the directors accounts are frozen (FCA action, not BDO).
The crucial bit is the treatment of investors, whereby the loan assets are deemed to be "trust assets" - and I initially interpret this to mean the p2p loan principal amounts themselves (but maybe not interest) are ring-fenced away from other creditors, if perhaps not from the administrators fees.... Perversely we now get two bites of the cherry where we would only have got one if the platform was still up and running - any shortfall in loan recovery post default becomes a creditor claim.
Clearly borrowers who struggle to refi will have every incentive to drag their feet, knowing full well the clock is ticking and fees will mount up as quickly as the interest they owe (and which many will have sat on). How the recovery effort plays out will be interesting.
Nevertheless, it looks like there will be a recovery. It's not going to be 100%, but it's better to be debating the merits of 50% vs 75% than bemoaning a very round number called zero.
Given the recent revelations over the antics of a Mr. GC of RR I would have thought all forum members should be very grateful the FCA has intervened.
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copacetic
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Post by copacetic on Jun 22, 2018 0:06:40 GMT
Page 12 Showing off a bit of bling for the weekend?
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keystone
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Post by keystone on Jun 22, 2018 0:41:16 GMT
Is cash held in client accounts treated as a trust claim or unsecured creditor claim?
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SteveT
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Post by SteveT on Jun 22, 2018 4:31:20 GMT
On first reading, the proposals appear sensible and logical to me. Pleased to hear that loan repayment / recovery proceeds and Client monies are proposed to be treated as Trust Assets (as they should be) and that there are now grounds for hope that lenders’ positions in individual loans and tranches can be identified, reconciled and used to allocate payment.
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jcm9000
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Post by jcm9000 on Jun 22, 2018 5:41:18 GMT
Page 11 and 12 certainly makes me feel better this morning, and one big finger up to the data providers who said no cheese! I also note comments that the fca and col were in protracted discussions, contrary to what the fca were claiming that they knew nothing until after shop was shut from comments on other threads? Regardless, i am much more hopeful.
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