Monetus
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Post by Monetus on Jun 23, 2018 16:37:53 GMT
Thanks to dan1 for original information:
Snapshot of Property Loans as of 25 Feb 2018:
Total Loan value £15,045,820 (of which drawndown £12,860,820) Loans not drawndown: - BL00087 & BL00088: 2 x Blackpool [fully funded £125k] - BL00079 1-4: Chesterfield [fully funded £1,460k] - DL00034-39: Bolton 26th-31st drawdown [26th drawdown fully funded £100k, 27th-31st drawdown funded £72,268.30, available £427,731.70] Total Loan value funded by investors £14,618,088Notes:- BDO listed the total value of the property loan book in their report on June 22nd as £14,910,651.91 (strangely higher than the total amount loaned as of the 25th Feb snapshot by £292,563.91) - BDO lists the value of cash in the client account as £383,243.54
- Total loan book value BDO provided is significantly higher (£14,910,651.91) than the total drawn down based on the platform (£12,860,820). 2 million extra has been loaned out/drawn down? - No registered charge for the Chesterfield loan and the loan was not listed as being drawndown on the site prior to administration. This makes it unlikely that this borrower ever received the funds. - Balances of Collateral company bank accounts shows this £1.45 million clearly isn't present in cash on account which suggests it's almost definitely been lent out to someone else? - Need to establish location of non-drawndown funds and whether Chesterfield funds were actually provided to other projects such as Bolton. Jessica at RR hinted at this I believe? - If funds have been mixed / allocated to different loans where does this leave investors legally in regards to the administration? Would their funds be allocated to the security of the other loan?
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mason
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Post by mason on Jun 23, 2018 18:40:27 GMT
Wasn't there a mention of other loans not on the platform somewhere within the report?
Edit - this: "Based on present information, the assets available to the Companies (that is, those assets that are not ultimately found to be trust assets) appear to be limited to the cash held in the office account and any loans that were made directly by the Companies rather than investors via the Collateral platform. In respect of this latter category, the directors have advised us that there is a limited number of assets, being certain chattels and one property loan, that pre-date the Collateral platform and which are assets of the Companies (rather than potentially trust assets)."
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Monetus
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Post by Monetus on Jun 23, 2018 18:49:51 GMT
Yes I believe there was. That may be an explanation for the 2 million difference between the BDO value of the loan book vs the "drawn down" platform snapshot amount on February 25th.
However, it's curious that the 1.4 million for Chesterfield isn't present in the client account if it hasn't "drawn down" officially and there is no registered charge - the main question we need to answer I guess is "has it been loaned to someone else and if so, who?"
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mason
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Post by mason on Jun 23, 2018 18:59:44 GMT
However, it's curious that the 1.4 million for Chesterfield isn't present in the client account if it hasn't "drawn down" officially and there is no registered charge - the main question we need to answer I guess is "has it been loaned to someone else and if so, who?" Yes, even the RR report made this discrepancy plain to see. It is concerning that these funds are still not accounted for as if they were 'resting' with a solicitor pending a drawdown, I'd have expected BDO to be aware of this by now. Hopefully not more 'business profits'
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Monetus
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Post by Monetus on Jun 25, 2018 10:48:35 GMT
Has anyone who's been in touch with BDO managed to ascertain that these funds have been located and/or whether they have been allocated to other loans?
I notice that they are absent from the report and as far as I'm aware it was one of the main priorities of the administrators to locate these funds when they won the court case.
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snowmobile
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Post by snowmobile on Jun 25, 2018 11:06:21 GMT
Has anyone who's been in touch with BDO managed to ascertain that these funds have been located and/or whether they have been allocated to other loans? I notice that they are absent from the report and as far as I'm aware it was one of the main priorities of the administrators to locate these funds when they won the court case. It was a gaping hole in the draft RR report and remains a gaping hole in the BDO report. I would have thought the issue should at least have been mentioned in the latest report. I guess the answer must be no these funds have not been located. Without full access to the company accounting records there is little BDO can do to fully investigate this at the moment.
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jlend
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Post by jlend on Jun 25, 2018 11:29:05 GMT
Has anyone who's been in touch with BDO managed to ascertain that these funds have been located and/or whether they have been allocated to other loans? I notice that they are absent from the report and as far as I'm aware it was one of the main priorities of the administrators to locate these funds when they won the court case. It was a gaping hole in the draft RR report and remains a gaping hole in the BDO report. I would have thought the issue should at least have been mentioned in the latest report. I guess the answer must be no these funds have not been located. Without full access to the company accounting records there is little BDO can do to fully investigate this at the moment. That would seem to be a good initial step. BDO do have a list of the loans and amounts from the Col solictors. What they don't have is the amounts each lender has in each loan. If BDO were to release this list of loans to lenders I asssume it would be a pretty quick job for a few lenders to check for anything obvious in terms of missing loans or loans that were not expected. The IT platform wouldn't be needed to do this initial check.
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Monetus
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Post by Monetus on Jun 25, 2018 11:35:53 GMT
It was a gaping hole in the draft RR report and remains a gaping hole in the BDO report. I would have thought the issue should at least have been mentioned in the latest report. I guess the answer must be no these funds have not been located. Without full access to the company accounting records there is little BDO can do to fully investigate this at the moment. That would seem to be a good initial step. BDO do have a list of the loans and amounts from the Col solictors. What they don't have is the amounts each lender has in each loan. If BDO were to release this list of loans to lenders I asssume it would be a pretty quick job for a few lenders to check for anything obvious in terms of missing loans or loans that were not expected. The IT platform wouldn't be needed to do this initial check. Yes this is why I am surprised it's not been confirmed if the Blackpool, Chesterfield, Bolton loans really do exist and if the funds were actually drawndown by the borrowers after all. BDO claim to have all of the loan documentation so they should definitely have a list of all loans, amounts and security (which they used to provide their report financials). The cash (for Chesterfield at least) isn't in the bank accounts.... so it's vital that we establish what's happened to these loans and whether any security is held as soon as possible.
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amphoria
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Post by amphoria on Jun 25, 2018 13:33:58 GMT
There is a post on Frank (the 2nd one from Butcher on the page) where he surmises that the £14 million on loan according to BDO includes the non-drawndown loans based on a comparison with dan1 's spreadsheet. It is possible that BDO are not differentiating between the two different loan scenarios in their report because they have both been "invested" in a loan. The client account total would then just be un-invested cash. |
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