mary
Member of DD Central
Posts: 698 
Likes: 711
|
Post by mary on May 25, 2019 20:35:36 GMT
The administrators probably have far more experience and are far better at recovering money than Lendy - let's be honest, they can't be any worse! So it could be argued that this is a positive step for lenders. That said, I am an eternal optimist. As a rule, they do not engage in long term solutions unless they can charge a fortune for it. The normal MO for this type of administration is to check what funds are available for paying them - we know that the answer to that is likely to be zero. The next step will be to sell the loan book for at least enough to recover their own fees. Lenders will be lucky to see a penny of capital returned, perhaps 20% might be realistic with the wind behind the process and only because the FCA will be watching closely so the administrators will not be able to act entirely in their own interests. While you are correct in that the Administrators fees are taken, before we see anything, I believe that we still hold an interest in each loan proportional to our investment, therefore as there are several loans that should return £m’s, which likely should be in excess of the fees, then if you hold those loans, you should see more than a few p in the pound. Although, sadly, there are no guarantees, and final resolution will probably be years - see Collateral!
|
|
zccax77
Member of DD Central
Posts: 82
Likes: 76
|
Post by zccax77 on May 25, 2019 20:57:45 GMT
Most of these investments are segregated, therefore the administrators cannot comingle them and take big fees out without providing any basis for said fees. Additionally there are administrators/IP's already on the ground in some of the defaults and some are quite advanced.
|
|
mikeh
Member of DD Central
Posts: 499 
Likes: 370
|
Post by mikeh on May 25, 2019 21:03:38 GMT
Everybody seems to be ignoring the 'living will' which is supposedly in place. The administrators (RSM Restructuring Advisory LLP) will no doubt take some time to assess Lendy's position but I assume will eventually hand over the loan administration to the back-up service provider (Baker Tilly Creditor Services LLP). Although these two firms both operate under the RSM banner, they are legally two separate partnerships with very different roles to play. I would expect the back-up service provider to carry on much as Lendy have been doing, although hopefully in a more professional manner. If for some reason this doesn't happen, as I see it, the whole 'living will' regulations become meaningless.
|
|
averageguy
Member of DD Central
Posts: 1,188
Likes: 895
|
Post by averageguy on May 25, 2019 22:47:25 GMT
The administrators probably have far more experience and are far better at recovering money than Lendy - let's be honest, they can't be any worse! So it could be argued that this is a positive step for lenders. That said, I am an eternal optimist. As a rule, they do not engage in long term solutions unless they can charge a fortune for it. The normal MO for this type of administration is to check what funds are available for paying them - we know that the answer to that is likely to be zero. The next step will be to sell the loan book for at least enough to recover their own fees. Lenders will be lucky to see a penny of capital returned, perhaps 20% might be realistic with the wind behind the process and only because the FCA will be watching closely so the administrators will not be able to act entirely in their own interests. So lucky to see a penny of capital....but 20% is realistic...well that’s a clear statement then LOL
|
|
Godanubis
Member of DD Central
Anubis is known as the god of death and is the oldest and most popular of ancient Egyptian deities.
Posts: 2,011
Likes: 1,013
|
Post by Godanubis on May 25, 2019 23:05:03 GMT
As a rule, they do not engage in long term solutions unless they can charge a fortune for it. The normal MO for this type of administration is to check what funds are available for paying them - we know that the answer to that is likely to be zero. The next step will be to sell the loan book for at least enough to recover their own fees. Lenders will be lucky to see a penny of capital returned, perhaps 20% might be realistic with the wind behind the process and only because the FCA will be watching closely so the administrators will not be able to act entirely in their own interests. So lucky to see a penny of capital....but 20% is realistic...well that’s a clear statement then LOL Fees should be well covered by the interest due to Lendy on recovered loans and those that pay back as normal.
The job is to manage the loans, There is no looking for data etc, So there can only be managment fees.
As Lendy Staff that were doing that are no longer required then sorry thanks for your service but goodbye. Salaries saved go toward fees.
With their high interest payments going in fees the balance should br minimal.
Repossess all Properties on loans that are more that 3 Months overdue and then manage their disposal or Build out to obtain the highest returns.
No need for a firesale any properties that had obvious errors in initial valuations then sue the appropriate professional.
It requires a hard no nonsense approach to get results and put the fear of death into Borrowers on all platforma that the worm has turned for P2P and if you don't stick to the contract you will be hit Hard & Fast.
|
|
|
|
Post by cashmax on May 26, 2019 3:19:08 GMT
As a rule, they do not engage in long term solutions unless they can charge a fortune for it. The normal MO for this type of administration is to check what funds are available for paying them - we know that the answer to that is likely to be zero. The next step will be to sell the loan book for at least enough to recover their own fees. Lenders will be lucky to see a penny of capital returned, perhaps 20% might be realistic with the wind behind the process and only because the FCA will be watching closely so the administrators will not be able to act entirely in their own interests. So lucky to see a penny of capital....but 20% is realistic...well that’s a clear statement then LOL If you read what I wrote, I was suggesting that the likelyhood is somewhere between zero and 20% back. With the latter being a good result - i.e. lucky (as a result of the FCA involvement)
|
|
|
|
Post by GSV3MIaC on May 26, 2019 7:12:55 GMT
You have to admire the timing .. burying it in the midst of Brexit elections, and a bank holiday weekend .... even the Daily Wail couldn't find space for it this weekend ..
|
|
hazellend
Member of DD Central
Posts: 2,363
Likes: 2,180
|
Post by hazellend on May 26, 2019 7:46:45 GMT
So lucky to see a penny of capital....but 20% is realistic...well that’s a clear statement then LOL If you read what I wrote, I was suggesting that the likelyhood is somewhere between zero and 20% back. With the latter being a good result - i.e. lucky (as a result of the FCA involvement) Thanks for your expert opinion. Nonsense.
|
|
Greenwood2
Member of DD Central
Posts: 4,385
Likes: 2,784
|
Post by Greenwood2 on May 26, 2019 7:48:31 GMT
The administrators probably have far more experience and are far better at recovering money than Lendy - let's be honest, they can't be any worse! So it could be argued that this is a positive step for lenders. That said, I am an eternal optimist. As a rule, they do not engage in long term solutions unless they can charge a fortune for it. The normal MO for this type of administration is to check what funds are available for paying them - we know that the answer to that is likely to be zero. The next step will be to sell the loan book for at least enough to recover their own fees. Lenders will be lucky to see a penny of capital returned, perhaps 20% might be realistic with the wind behind the process and only because the FCA will be watching closely so the administrators will not be able to act entirely in their own interests. There are meant to be orderly wind down procedures in place, not a fire sale. Although how orderly it can be may depend on how disorderly it currently is.
|
|
rocky1
Member of DD Central
Posts: 1,139
Likes: 1,963
|
Post by rocky1 on May 26, 2019 8:03:15 GMT
will this see a lot of borrowers making very low offers on their own defaults as with SD on student development schemes?.will administraters call in all these debentues and PGs? these borrowers and liam/lendy should not be allowed to come out of all this rubbing their hands and patting each other on the back.
|
|
|
|
Post by supernumerary on May 26, 2019 8:14:34 GMT
So lucky to see a penny of capital....but 20% is realistic...well that’s a clear statement then LOL Fees should be well covered by the interest due to Lendy on recovered loans and those that pay back as normal. The job is to manage the loans, There is no looking for data etc, So there can only be managment fees. As Lendy Staff that were doing that are no longer required then sorry thanks for your service but goodbye. Salaries saved go toward fees. With their high interest payments going in fees the balance should br minimal. Repossess all Properties on loans that are more that 3 Months overdue and then manage their disposal or Build out to obtain the highest returns.
No need for a firesale any properties that had obvious errors in initial valuations then sue the appropriate professional. It requires a hard no nonsense approach to get results and put the fear of death into Borrowers on all platforma that the worm has turned for P2P and if you don't stick to the contract you will be hit Hard & Fast.
Just wish, IMHO, you were in charge of the operation and/or the lenders representative for the Administrators to consult in these matters...  Not a very pleasant May Bank Holiday weekend for lenders, 22,653 of them, now potentially losing money BIG time on this...  My self included... As I previously mentioned, the words of a poster on Trust Pilot; "...nobodys dead,it’s not Stalingrad- but it is a daily source of worry and anxiety..."
|
|
Mucho P2P
Member of DD Central
Posts: 946
Likes: 1,635
|
Post by Mucho P2P on May 26, 2019 8:27:00 GMT
So lucky to see a penny of capital....but 20% is realistic...well that’s a clear statement then LOL Fees should be well covered by the interest due to Lendy on recovered loans and those that pay back as normal.
The job is to manage the loans, There is no looking for data etc, So there can only be managment fees.
As Lendy Staff that were doing that are no longer required then sorry thanks for your service but goodbye. Salaries saved go toward fees.
With their high interest payments going in fees the balance should br minimal.
Repossess all Properties on loans that are more that 3 Months overdue and then manage their disposal or Build out to obtain the highest returns.
No need for a firesale any properties that had obvious errors in initial valuations then sue the appropriate professional.
It requires a hard no nonsense approach to get results and put the fear of death into Borrowers on all platforma that the worm has turned for P2P and if you don't stick to the contract you will be hit Hard & Fast.
One item that is not mentioned, and on every administrators list, is to attempt to locate a buyer for the company as a going concern. I would partly conclude, as Mark Wilson was appointed, that this option might not be on the Administrators list, due to the potential of fraud lurking in the cupboards.
|
|
invester
P2P Blogger
Posts: 612
Likes: 618
|
Post by invester on May 26, 2019 8:55:54 GMT
The trouble is I don't think there has been a definite case where we actually got something from the valuers.
Lendy did reference a success but it is hard to know how much in this context. They could have simply settled at a low figure in a last ditch effort to stay above the waves.
|
|
averageguy
Member of DD Central
Posts: 1,188
Likes: 895
|
Post by averageguy on May 26, 2019 9:06:52 GMT
So lucky to see a penny of capital....but 20% is realistic...well that’s a clear statement then LOL If you read what I wrote, I was suggesting that the likelyhood is somewhere between zero and 20% back. With the latter being a good result - i.e. lucky (as a result of the FCA involvement) Oh I read it which is why I posted what I did.
|
|
Godanubis
Member of DD Central
Anubis is known as the god of death and is the oldest and most popular of ancient Egyptian deities.
Posts: 2,011
Likes: 1,013
|
Post by Godanubis on May 26, 2019 11:40:54 GMT
Fees should be well covered by the interest due to Lendy on recovered loans and those that pay back as normal.
The job is to manage the loans, There is no looking for data etc, So there can only be managment fees.
As Lendy Staff that were doing that are no longer required then sorry thanks for your service but goodbye. Salaries saved go toward fees.
With their high interest payments going in fees the balance should br minimal.
Repossess all Properties on loans that are more that 3 Months overdue and then manage their disposal or Build out to obtain the highest returns.
No need for a firesale any properties that had obvious errors in initial valuations then sue the appropriate professional.
It requires a hard no nonsense approach to get results and put the fear of death into Borrowers on all platforma that the worm has turned for P2P and if you don't stick to the contract you will be hit Hard & Fast.
One item that is not mentioned, and on every administrators list, is to attempt to locate a buyer for the company as a going concern. I would partly conclude, as Mark Wilson was appointed, that this option might not be on the Administrators list, due to the potential of fraud lurking in the cupboards. A very good point and probably the best solution if another P2P bought the lot at say Capital plus 3% (we should get somthing extra for our good faith  ) The loans that are good payers and good reclaims should make for a good profit and investors get a reasonable return (in this climate compared to banks.) . They would probably get a few extra investors to their platform.
|
|
) The loans that are good payers and good reclaims should make for a good profit and investors get a reasonable return (in this climate compared to banks.) .