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Post by cashmax on Oct 30, 2018 9:30:40 GMT
Really pleased that Lendy came back and gave clarity, that they cannot go into any details is because they are still in negotiations. If they can offer some solutions to some very over-ripe loans well done to them, let's wait and see. Not sure if your comment is tongue in cheek or if your definition of clarity is very different from my own?
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Post by Deleted on Oct 30, 2018 9:46:10 GMT
within the bounds of "being in negotiation" that is "clarity".  |
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jeremy12
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Post by jeremy12 on Oct 30, 2018 9:46:21 GMT
I suspect it might be too late for that. Lendy aren't going to acquire customers by competently administering bad loans. That is the very least we should expect, and there are few indications that they are doing this job well. They can get more customers by producing some decent investment opportunities for people to partake in. That is how their reputation will be rebuilt, but it seems that the origination side of the business is dead. If there was something in the pipeline wouldn't they have told us by now? Interestingly, the staff profiles have disappeared from the site but if you are quick the staff list still appears on the borrowing prospectus complete with photos. I do wonder how many of them will be left by the end of the year. Yes all we can hope for or expect is an orderly wind down of the loans and business.
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Greenwood2
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Post by Greenwood2 on Oct 30, 2018 9:49:40 GMT
Really pleased that Lendy came back and gave clarity, that they cannot go into any details is because they are still in negotiations. If they can offer some solutions to some very over-ripe loans well done to them, let's wait and see. I'm wondering what criteria may be used to decided which loans to sell on as the majority are in poor condition. This would end up with Lendy having very few loans and no new business in sight. Probably more a question of which loans they can find a buyer for. I do wonder what happens to lenders who decide to stay in a loan that has been sold on. Or does the buyer become a Lendy lender? And who controls ongoing recovery action on 'sold' loans? I would assume the buyer would want control...
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Post by Badly Drawn Stickman on Oct 30, 2018 9:52:19 GMT
Really pleased that Lendy came back and gave clarity, that they cannot go into any details is because they are still in negotiations. If they can offer some solutions to some very over-ripe loans well done to them, let's wait and see. Not sure if your comment is tongue in cheek or if your definition of clarity is very different from my own? Arguably the Lendy comment last evening gave clarity to their position, which if you accept it at face value suggests the position is far more positive than a wholesale disposal off the entire loan book (which may well have never been an option for them anyway). It cannot be viewed as a bad thing that they appear to be exploring a range of options to resolve the fairly obvious problems that currently exist. I suspect creating an environment they feel willing to engage in is to all investors current advantage, I would therefore suggest @bobo had their tongue appropriately positioned in this instance.
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Balder
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Post by Balder on Oct 30, 2018 9:54:43 GMT
perhaps they are only looking at the loans under the old T&C's that they have liability for, as a way to minimise their own losses.
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invester
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Post by invester on Oct 30, 2018 10:07:47 GMT
That is a good point. Only the Exeter one is left though, is that correct?
I think even the most bullish person on Lendy would have to concede that they are a shrinking business in terms of staff count and deal size, and their spectacular growth was brought on shaky foundations, loans where the risk/reward did not stack up even for them, and fuelled by lenders (mostly) unprepared for the risks (I include myself in that).
Even if all the bad loans were cleared off the books it is hard to see where they go from here. Take a multi-million DFL loan to a SPV. Investors wouldn't touch it, Lendy would also be wary having been burned several times by unscrupulous lenders who have no intention of doing any development. You are not going to get much business done in an environment where everyone distrusts each other like this.
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garfield
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Post by garfield on Oct 30, 2018 11:05:08 GMT
That is a good point. Only the Exeter one is left though, is that correct? I thought there were a few PBLs as well... also there are 2 Exeter loans.
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jeremy12
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Post by jeremy12 on Oct 30, 2018 11:09:40 GMT
Yes the Exeter loans are significant in size and a real burden for Lendy
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Post by lendinglawyer on Oct 30, 2018 11:12:11 GMT
Lendy have denied the story and very clearly said that each investor will have the option to accept any offer or hold out to see if they get better/worse come the end.
How could anyone view that optionality as a bad thing? Reality check is that losses are almost inevitable now, question is how much is returned and when... The choice ultimately comes down to a fixed sum now or wait and see what a new cornerstone investor can recover while ranking pari passu with them? Many people have said they would happily accept a haircut to get out now, so why not let them have the chance if that is what they want / need taking into account their personal circumstances?
Couple of points that I think are worth noting:
-Lendy will probably make it a term of accepting any buyout at a discount that they get a total release of liability from accepting investors. I would like to encourage Lendy to refrain from doing this and to allow a free deal between buyer and seller without their own interests being shoved in the middle. Kind of hard to see how insisting on such a term could be "in the best interests of investors".
-any buyer Lendy arranges is likely to make it a term that they get some say / total control over recovery / enforcement efforts going forward, but given the thinning ranks at Lendy and the ineffectiveness of their efforts to date that may also be a good thing! And at least you know, if you do not accept the offer, that they are incentivised if they buy others out at [50]p on the pound to do better than their entry price for you if you hold out. On the flip side though if they bought in at [50]p on the pound they are less incentivised to strive for 100% recovery than you would be, but if they can get it you can bet they will as they are out to make money just as much as the rest of the investors.
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garfield
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Post by garfield on Oct 30, 2018 11:24:06 GMT
Lenders need a voice and representation in what is to come.
Ideally if there was a Lendy Victims Group that had a simple united message, FCA might be prepared to hear it and hold the platform to account as things are wound up.
I've seen it before. But let's be more positive in the name... How about LICE = Lendy Investors Collectively Empowered? Just a thought...
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invester
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Post by invester on Oct 30, 2018 11:32:11 GMT
I suppose it depends whether you can trust them. To me they have shown poor ethics in certain aspects. Unless Dorethea is real and put a comment on Trustpilot herself, the only other explanation is they have solicited a fake review.
During the course of their discussions they must have a serious amount of informal information which we are not party to. With the benefit of this I don't see the likelihood of anyone selling out to be getting a better deal, and obviously whoever is underwriting this would be getting a cut.
Longer-term it is terrible for the business. I would guess that most people are not selling out because they just want the cash, but because they just want to end their association with the platform and never come back. In addition, what happened to the enlarged recovery team they had so much confidence in?
I don't think the primary motivation behind this is to provide people with an out but rather to simplify Lendy's operations. There is a danger soon that if some of these big losses become crystallised that the negative press might become even worse. It doesn't seem too far-fetched that sob stories will be appearing on Watchdog.
It would be great for them to sell out all the headaches to someone else and start with a clean slate - perhaps a black-box model based on more conservative bridging, but it doesn't work like that.
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rocky1
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Post by rocky1 on Oct 30, 2018 11:45:40 GMT
who is going to prepare this months BS.i feel with all the speculation and uncertainty on here at the moment maybe they should forget about all the brexit and house building and weather forcasts for this month.brooks and kelly should should let us know exactly where things stand and provide some information to lenders as to proper updates and which way the lendy boat is steering.
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SteveT
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Post by SteveT on Oct 30, 2018 11:59:45 GMT
Lendy have denied the story and very clearly said that each investor will have the option to accept any offer or hold out to see if they get better/worse come the end. I rather suspect a distressed debt investor would want to buy out a loan entirely (or multiple loans), not be left with residual Lendy customers hanging from their shirt tails. My interpretation of " Any exit by lenders in those loans would, of course, be entirely voluntary" is that a majority vote to accept would suffice.
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Post by picanto on Oct 30, 2018 12:13:53 GMT
Lendy have denied the story and very clearly said that each investor will have the option to accept any offer or hold out to see if they get better/worse come the end. I rather suspect a distressed debt investor would want to buy out a loan entirely (or multiple loans), not be left with residual Lendy customers hanging from their shirt tails. My interpretation of " Any exit by lenders in those loans would, of course, be entirely voluntary" is that a majority vote to accept would suffice. I've read that to mean that it is up to each individual investor whether they accept an offer or not. The outcome of a vote is not a voluntarily decision but a majority decision.
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