template letter to FCA - replace Liam Brooke as Director
Apr 4, 2019 18:24:06 GMT
p2plender, charliebrown, and 2 more like this
Post by wuzimu on Apr 4, 2019 18:24:06 GMT
Thanks to all those people who have PM'd me to say they are sending a version of this letter to FCA.
If you have sent, but not PM'd, that is useful to see if critical mass is acheived.
Not that long ago many were posting how much longer Lendy might stay in business given obvious cash flow issues.
As sole Director and 100% ultimate beneficiary, the answer has for some time been when Liam Brooke decides there is no more big bucks for him.
And as Liam appears to think Lendy can take whatever undiclosed fees it likes from recoveries as they come in with no justification ....
the end of Lendy could be some time away or next week.
I do put the sorry story of Lendy at Liam Brooke's door, he has made all the decisions that take us to where we are now, with no good options.
I see only 3 options
1 Lendy carries on as it has been under the control of Liam, with secretive fees and the uncertainty of when he decides to throw in the towel - which will be at a moment of crisis.
2 Lendy becomes insolvent and a ends up being run down by IP Administrator. That will follow option 1 or if FCA decide Lendy accounts are inappropriately stated and the business is in fact insolvent now.
3 Liam replaced as Director NOW and a solvent Lendy free of Liam, with new Directors running the book down with the watchful eye of FCA and a remit to only take fees that are required to keep Lendy solvent so as to maximize lender recovery and to examine past payments benefiting past Directors. Lendy Group / Liam can remain as shareholder. By the end the shares will be worth nothing.
Having laid out those options I like number 3.
It would remove the fate of Lendy from a Director whose greed and incompetence I conclude is starkly revealed and who has laid an opaque corporate structure ready for further value extraction.
It avoids an opaque, expensive and lethargic IP Administration process and the uncertain timing when that eventuality occurs.
The likely net recovery of the c£144m defaulted loan book is 20% - 50% as per recent experience which ever option is taken, but I suspect new independent Directors would outperform leaving Liam in place or IP's by a worthwhile margin. And it would look like effective proportional intervention by FCA.
The best thing lately is the FCA are interested and involved. Many here will think, great job done. I don't agree.
FCA have their own agenda, not necesarily that of damaged lenders. They need reminding of lenders point of view and that we will be maybe £100m down in this game, we need them to pull out the stops on this one.
Sending a letter like I wrote, may or may not prompt FCA to replace Liam as Director through formal or informal means. But at the least it will encourage FCA to increase their attention to this affair and that must be a good thing for lenders.
If enough people write to form a credible group, FCA will hear and will engage. Thanks again for PM's
