elliotn
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Post by elliotn on Oct 20, 2018 11:38:24 GMT
Understood Monetus. However, I would think that a Demand Letter from professionals like BDO will immediately focus Borrowers attention, unlike a Please Pay Us Letter (and that's as, if & when they get round to it) from a PissWeak Pushover Platform. Or at least I hope and fully expect that BDO are going in hard & no nonsense when appropriate. Which should typically be by three months after Maturity Date, at the latest, in most cases I'd say. In a parallel universe recalcitrant borrowers may think Xmas is coming imminently and the administrators won’t have the time/resource/the investor willingness to accept their prolonged fees and deliberately low-ball?
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Monetus
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Post by Monetus on Oct 20, 2018 11:43:51 GMT
These I can answer...
Has the Creditors' Committee approved the Joint Administrators' fees?
Not yet - fees and expenditure so far are currently under review by the Creditors Committee.
Is a progress report to investors due on 2nd November, six months post appointment?
The next report covering the previous six months is due prior to the 26th November 2018 and will be posted on the Collateral BDO website.
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elliotn
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Post by elliotn on Oct 20, 2018 11:52:14 GMT
Monetus - Monetus - thanks for the update and your time and efforts continue to be appreciated. I appreciate everything you have said, but just two points to log for the next meeting if I may. 1. I hope BDO are taking an equally firm hand with regard to the recovery of pre administration 'withdrawal' of £350k+? 2. The last update said that the IT platform data had been recovered and that whilst this was still being worked on, the hope was that investors would be repaid on a loan by loan/by tranche basis. If this comes to fruition, one would hope that some loans that have been recovered could start to be paid back to the relevant investors, rather than wait to the end of the whole affair? I think this would make some investors very happy that progress is truly being made in the absence of any other information? Anyway, will leave you to consider as you wish. - Cheers P #2 might be your own extrapolation. Apart from re-constituting the platform data that may also rely upon all client funds being fully traced. ie were any funds - not apparently visible in the (admittedly) preliminary statement of affairs - used towards developments they were not drawn down or even pledged against? Randomly picking a hypothetical scenario - how could Bolton tranche 1 be repaid if other investors’ monies could not be confirmed to have been (un-contractually) used to help maximise the return of the senior tranche investors? As well as full data, be prepared for full traceability of all investor funds to be necessary to implement a loan by loan repayment*. * For the avoidance of doubt, I don’t know if that’s the case - the regs/laws suggest it might be - but I do know Monetus and the other asymmetrically privileged investors on the committee could not tell us otherwise. ** As previously stated, I am substantially invested in bling/cash.
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ozboy
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Post by ozboy on Oct 20, 2018 11:53:56 GMT
Thanks Monetus, all common sense and I think we all agree with you, and I know you understand my points. Of course there will be situations where it is better to allow more time and work with the Borrower. As you say, we Lenders are not privy to the innermost machinations of every Loan. OTOH there are the Borrowers who need to be closed on like a ton of bricks, otherwise they'll play the game forever. I am hopeful that BDO are reasonably adept at identifying which camp a Borrower falls into and act accordingly & swiftly
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elliotn
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Post by elliotn on Oct 20, 2018 11:54:52 GMT
I can’t comment on anything but feel free to leave your queries and questions here in this thread and I’ll be sure to take them on board for the next meeting. Has the Creditors' Committee approved the Joint Administrators' fees? If so, are BDO being paid at present? If not, is there an agreed deadline? To incentivise the administrators to conclude the process promptly, could the Committee ensure remuneration is based on a percentage of each loan recovered? Is a progress report to investors due on 2nd November, six months post appointment? We were initially told it was by time expended; we haven’t been told any different, possibly we would know by the next update (certainly by the required receipts update).
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11025
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Post by 11025 on Oct 20, 2018 12:03:17 GMT
I can’t comment on anything but feel free to leave your queries and questions here in this thread and I’ll be sure to take them on board for the next meeting. Thanks for the feedback and the efforts you have put in , I had some feedback from another Platform regarding issues with refinancing Collateral loans , they stated BDO were difficult to engage with and this is one of the reasons the refinance was pulled at a not insignificant cost to the platform themselves , could this situation be raised ? hopefully there is a genuine one off situation here and it won't be a pattern .
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Monetus
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Post by Monetus on Oct 20, 2018 12:10:05 GMT
Has the Creditors' Committee approved the Joint Administrators' fees? If so, are BDO being paid at present? If not, is there an agreed deadline? To incentivise the administrators to conclude the process promptly, could the Committee ensure remuneration is based on a percentage of each loan recovered? Is a progress report to investors due on 2nd November, six months post appointment? We were initially told it was by time expended; we haven’t been told any different, possibly we would know by the next update (certainly by the required receipts update). Yes it’s by time expended and also (in the spirit of P2P) on a per “trust asset” basis meaning that the amount of time spent on an individual loan is being recorded by BDO and will be allocated to that loan individually wherever possible. Seperately from this, time spent on more general matters which are beneficial to all investors will be allocated across all loans.
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elliotn
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Post by elliotn on Oct 20, 2018 12:13:47 GMT
We were initially told it was by time expended; we haven’t been told any different, possibly we would know by the next update (certainly by the required receipts update). Yes it’s by time expended and also (in the spirit of P2P) on a per “trust asset” basis meaning that the amount of time spent on an individual loan is being recorded by BDO and will be allocated to that loan individually wherever possible. Seperately from this, time spent on more general matters which are beneficial to all investors will be allocated across all loans. I can imagine @megamoney, I hated audit time records!
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7d7
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Post by 7d7 on Oct 20, 2018 14:39:25 GMT
We were initially told it was by time expended; we haven’t been told any different, possibly we would know by the next update (certainly by the required receipts update). Yes it’s by time expended and also (in the spirit of P2P) on a per “trust asset” basis meaning that the amount of time spent on an individual loan is being recorded by BDO and will be allocated to that loan individually wherever possible. Seperately from this, time spent on more general matters which are beneficial to all investors will be allocated across all loans. By time expended? How is this possible when the Joint Administrators have not yet obtained approval to the basis and quantum of their remuneration from the Creditors' Committee?
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picnicman
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Post by picnicman on Oct 20, 2018 14:43:58 GMT
Monetus - Monetus - thanks for the update and your time and efforts continue to be appreciated. I appreciate everything you have said, but just two points to log for the next meeting if I may. 1. I hope BDO are taking an equally firm hand with regard to the recovery of pre administration 'withdrawal' of £350k+? 2. The last update said that the IT platform data had been recovered and that whilst this was still being worked on, the hope was that investors would be repaid on a loan by loan/by tranche basis. If this comes to fruition, one would hope that some loans that have been recovered could start to be paid back to the relevant investors, rather than wait to the end of the whole affair? I think this would make some investors very happy that progress is truly being made in the absence of any other information? Anyway, will leave you to consider as you wish. - Cheers P #2 might be your own extrapolation. Apart from re-constituting the platform data that may also rely upon all client funds being fully traced. ie were any funds - not apparently visible in the (admittedly) preliminary statement of affairs - used towards developments they were not drawn down or even pledged against? Randomly picking a hypothetical scenario - how could Bolton tranche 1 be repaid if other investors’ monies could not be confirmed to have been (un-contractually) used to help maximise the return of the senior tranche investors? As well as full data, be prepared for full traceability of all investor funds to be necessary to implement a loan by loan repayment*. * For the avoidance of doubt, I don’t know if that’s the case - the regs/laws suggest it might be - but I do know Monetus and the other asymmetrically privileged investors on the committee could not tell us otherwise. ** As previously stated, I am substantially invested in bling/cash. elliotn - acknowledged - for what it is worth I have all loans in bling/cash - I guess in my own naive way, that was why I was hoping for some early settlements!! Let's hope we both and all the others fare well! Cheers P
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Monetus
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Post by Monetus on Oct 20, 2018 14:55:47 GMT
Yes it’s by time expended and also (in the spirit of P2P) on a per “trust asset” basis meaning that the amount of time spent on an individual loan is being recorded by BDO and will be allocated to that loan individually wherever possible. Seperately from this, time spent on more general matters which are beneficial to all investors will be allocated across all loans. By time expended? How is this possible when the Joint Administrators have not yet obtained approval to the basis and quantum of their remuneration from the Creditors' Committee? I was referring the proposal and fees estimate that the Committee has just received from BDO. This is broken down on a "time cost" basis and is currently being reviewed by the Committee. A final decision on the basis and quantum of remuneration has yet to be made and your comments have been noted.
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Post by Badly Drawn Stickman on Oct 20, 2018 15:03:01 GMT
By time expended? How is this possible when the Joint Administrators have not yet obtained approval to the basis and quantum of their remuneration from the Creditors' Committee? I was referring the proposal and fees estimate that the Committee has just received from BDO. This is broken down on a "time cost" basis and is currently being reviewed by the Committee. A final decision on the basis and quantum of remuneration has yet to be made. Presumably you and your fellow Creditors Committee members are in contact with each other and formulating an agreed approach to any potential decisions that need to be decided upon?
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Monetus
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Post by Monetus on Oct 20, 2018 16:13:33 GMT
I am in touch with some other Committee members for general discussion relating to the administration.
I won't be making any further comments regarding the administration until likely after the next meeting in early December.
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elliotn
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Post by elliotn on Oct 21, 2018 0:56:42 GMT
I am in touch with some other Committee members for general discussion relating to the administration. I won't be making any further comments regarding the administration until likely after the next meeting in early December. Presumably the NDA does not apply to other committee members because you are all already in a privileged position; just other investors kept on the outside? Do you have to ensure any such privileged discussion goes above normal security such as email, forum messages, unencrypted phone calls etc. I’m to be convinced a Creditors’ Committee works with a 1000 investors as opposed to a more typical administration where there may be only a handful of large creditors. All we have ended up with here are a few hyper privileged investors that can tell the rest of us close to nothing about our own monies invested. If your main job is to sign off their fees, then this is potentially a bit of expensive ridiculousness whilst giving the administrators a veneer of liaising with investors. How can you represent investors when you can ask our questions but can’t tell us the answers. How perfectly ludicrous. Except for yourself of course .
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Greenwood2
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Post by Greenwood2 on Oct 21, 2018 9:02:14 GMT
I am in touch with some other Committee members for general discussion relating to the administration. I won't be making any further comments regarding the administration until likely after the next meeting in early December. Presumably the NDA does not apply to other committee members because you are all already in a privileged position; just other investors kept on the outside? Do you have to ensure any such privileged discussion goes above normal security such as email, forum messages, unencrypted phone calls etc. I’m to be convinced a Creditors’ Committee works with a 1000 investors as opposed to a more typical administration where they may be only a handful of large creditors. All we have ended up with here are a few hyper privileged investors that can tell the rest of us close to nothing about our own monies invested. If your main job is to sign off their fees, how can you possibly represent investors when you’re not allowed to tell us anything. Potentially a bit of expensive ridiculousness imvho whilst giving the administrators a veneer of liaising with investors. You can ask our questions but can’t tell us the answers. How perfectly ludicrous. Except for you of course. I agree to some extent, can it really all be sooo secret. If the platform were still there updates on loans would be available. Surely BDO could provide a list of loans repaid, paying on time, late, etc to lenders, even if no distribution of funds can be made yet. Or are all the borrowers in highly secret, sensitive discussions with BDO?
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