travolta
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Post by travolta on Jun 1, 2019 10:01:32 GMT
The most effective creditor will be Inland Revenue....they get first cut.
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Yintara
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Post by Yintara on Jun 1, 2019 10:10:49 GMT
But if there is no recoverable interest, how will the administrators (or whoever will be running down the pond) get paid? They won’t do it for free and I don’t think interest get be recovered, unless they sell the properties/projects above the valuations? It's my understanding that part of the FCA authorisation requires platforms to appoint a backup service provider and hold funds required to cover an orderly wind-down. So it's very likely that at least part of the administrator's fees are already covered, although likely not all if the process becomes more extensive and complicated than expected.
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ilmoro
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'Wondering which of the bu***rs to blame, and watching for pigs on the wing.' - Pink Floyd
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Post by ilmoro on Jun 1, 2019 10:13:09 GMT
The most effective creditor will be Inland Revenue....they get first cut. They dont, they are an unsecured creditor so are at the back of the queue. The rules are being changed so from next year they will be a prefered creditor but that still ranks them behind secured creditors and only applies to payroll/consumer taxes which the business collects as an agent (PAYE/NI/VAT) not corporate taxes for which the business is directly laible.
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Post by samford71 on Jun 1, 2019 12:28:07 GMT
But if there is no recoverable interest, how will the administrators (or whoever will be running down the pond) get paid? They won’t do it for free and I don’t think interest get be recovered, unless they sell the properties/projects above the valuations? It's my understanding that part of the FCA authorisation requires platforms to appoint a backup service provider and hold funds required to cover an orderly wind-down. So it's very likely that at least part of the administrator's fees are already covered, although likely not all if the process becomes more extensive and complicated than expected. . I would assume there would be two broad streams. For the those involved in the old term loans, where the lender faced SS/Lendy, they may well be treated as unsecured creditors with priorities not related to specific loan recovery. For the majority of the loans, where the lender faced the borrower, and SS/Lendy was the agent, the assets used to secure the loans should be granted trust status. Legal precedence rules that administration costs may be deducted from trust assets. The administrators will therefore be able to apportion their time against trust assets with a view to deducting fees from realizations/recovery. Yintara . With regard to platforms holding funds required to cover an orderly wind-down. This is covered under FCA MLRA capital adequacy requirements. For P2P platforms these amounts are totally inadequate, as platforms were treated as intermediaries/agents (not taking direct risk). This completely misses the reality that the loan book is totally illiquid and can take many years to unwind. Capital adequacy requirements were 0.3% of the first £50m lent + 0.2% of the next £450m lent. So for Lendy with an outstanding loan book of say £150mm this would be in the region of £350k. Unfortunately, I think even this risible amount was watered down (I can't remember the new ratios) by platforms pressuring the FCA. It may be the case that the capital adequacy buffer was depleted in recent months (this can trigger the FCA to withdraw permissions, leading the company to have to go into administration). Even if the capital adequacy buffer is still in existance, a sum of £350k or less will be totally inadequate to cover RSM's costs for even a short period.
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zccax77
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Post by zccax77 on Jun 1, 2019 12:43:28 GMT
I am not asking for a FCSC bail out, but surely the FCA should be apportioned some blame in not adequately policing Lendy and allowing them to have so little capital? If this administration happened a year ago, there might have been a £3-5m pot to help pay wind-down fees, instead most of the capital/equity has been <redacted> expense.
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Post by meyerlansky on Jun 1, 2019 21:00:22 GMT
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ilmoro
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'Wondering which of the bu***rs to blame, and watching for pigs on the wing.' - Pink Floyd
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Post by ilmoro on Jun 1, 2019 21:18:26 GMT
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sydb
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Post by sydb on Jun 1, 2019 21:40:06 GMT
Well, someone keeps to their update deadlines  - just received by email. Blue highlighting mine. I've posted it out here as I don't see anything particularly confidential here. This letter came sooner than I expected. I suspect Lendy's email databases are in a shocking state judging by past history of hit and miss emails and I can't believe I am the only one who received some Lendy emails but not others. I would not trust that the administrators now have a comprehensive list of contact details for all known investors. Either the email lists are in a mess or the administrators are using Lendy's email servers which are not up to the job. I'm giving it a couple more days but if I still haven't received the message from the administrators then I may run a poll to see who has received the message to alert people to the fact that they may not be receiving emails from the administrators. It could be just a server blockage or an intentional gradual release from source so I will wait a couple of days.
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sirius
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Post by sirius on Jun 1, 2019 21:47:40 GMT
Does anyone know how to do this in Open Office please? Hi sirius. I don't personally use Open Office though have a few years ago. I imagine all steps are the same, except when you get to step 6, and from what I remember, Calc is quite straightforward in sorting/filtering data. Use my steps for the data part, but incorporate this simple guide into it and you will have your required results. www.youtube.com/watch?v=AN9ohO3nRn8Many thanks, gc.
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star dust
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Post by star dust on Jun 1, 2019 23:55:30 GMT
This letter came sooner than I expected. I suspect Lendy's email databases are in a shocking state judging by past history of hit and miss emails and I can't believe I am the only one who received some Lendy emails but not others. I would not trust that the administrators now have a comprehensive list of contact details for all known investors. Either the email lists are in a mess or the administrators are using Lendy's email servers which are not up to the job. I'm giving it a couple more days but if I still haven't received the message from the administrators then I may run a poll to see who has received the message to alert people to the fact that they may not be receiving emails from the administrators. It could be just a server blockage or an intentional gradual release from source so I will wait a couple of days. Don't know if this will help, but it was addressed to my email (rather than a generalised group email - as some of the Collateral ones have been), and it appeared to come from <support@lendy.co.uk>, they used Mailchimp (as usual) and mine arrived at Fri 31/05/2019 17:37. I have to say though, apart from in the very early days when I think some emails tended to get classified as spam and not even delivered to junk, I've rarely had any problems receiving their emails.
You would normally expect a few people to be piping up that they haven't received anything here, so it might be worth your while contacting them anyway, just to make sure you're on the list.
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Post by valueinvestor123 on Jun 2, 2019 2:50:02 GMT
It's my understanding that part of the FCA authorisation requires platforms to appoint a backup service provider and hold funds required to cover an orderly wind-down. So it's very likely that at least part of the administrator's fees are already covered, although likely not all if the process becomes more extensive and complicated than expected. . I would assume there would be two broad streams. For the those involved in the old term loans, where the lender faced SS/Lendy, they may well be treated as unsecured creditors with priorities not related to specific loan recovery. For the majority of the loans, where the lender faced the borrower, and SS/Lendy was the agent, the assets used to secure the loans should be granted trust status. Legal precedence rules that administration costs may be deducted from trust assets. The administrators will therefore be able to apportion their time against trust assets with a view to deducting fees from realizations/recovery. Ok so it looks like the admins could still plunder the funds and decrease the values substantially. Just trying to work out whether it’s more expensive for the company or the admins to run down the books. It shouldn’t make much difference to the investor whoever runs the books but I guess it does. If someone put a gun to your head, what would you estimate would be the average recovery rate? (After costs) just curious. I have been trying to reduce my allocation lent to Lendy in the last 2 years or so. Because I had everything switched on on auto-invest, I ended up with way too much with different tranches of the same kind. Realised too late...By that time it was too late to do anything about it. So have about 200k stuck with them. It was my second largest p2p platform (as it was the easiest to use in the beginning).
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hazellend
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Post by hazellend on Jun 2, 2019 8:29:29 GMT
A year and a bit in and whilst a few loans have been redeemed/refinanced there is still a long way to go. I don't expect so see anything back from Col for at least another year. assuming there is anything left in the pot. Collateral investors received after 1 years an administrator bill high enough to eat out 85% of the good loans who paid back 100%+interest. Surely after 2 years they'll receive another administrator bill eating the remaining amount recovered. This has been explained to you a few times already but you still seem to not understand. The costs are frontloaded and should not be measured against loans recovered so far.
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cwah
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Post by cwah on Jun 2, 2019 9:36:52 GMT
Collateral investors received after 1 years an administrator bill high enough to eat out 85% of the good loans who paid back 100%+interest. Surely after 2 years they'll receive another administrator bill eating the remaining amount recovered. This has been explained to you a few times already but you still seem to not understand. The costs are frontloaded and should not be measured against loans recovered so far. I understood that part. I'm speculating for the year 2 and onward but you'll find out!
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Greenwood2
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Post by Greenwood2 on Jun 2, 2019 10:32:12 GMT
A good bit of balanced reporting.... Interesting nugget: 'The FCA will release new guidelines for the Industry this week', I don't know if that was expected. Edit: I was actually reading the article in the paper today headline, 'Is this the end of the road for peer-to-peer?'. I think the content is similar, we are still doomed. 
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Godanubis
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Anubis is known as the god of death and is the oldest and most popular of ancient Egyptian deities.
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Post by Godanubis on Jun 2, 2019 11:04:08 GMT
P2P has so many incarnations that cannot be generalised.
Some consist of complex property investments which should only be available to knowledgeable sophisticated investors.
Some loans are over years others shorter
Others are simple person to person or platform to person cash short term loans where risks are obvious.
There are pawn loans where the asset is held and again easy to understand.
The selection of who can invest in what would be complex and probably would require a new breed of IFA from whom compulsory advice would need to be sought similar to protected pension advice. They would have to supply a researched risk assessment and recommendations. (Who fancies doing that)
will be be interesting to see any “clean up” proposals.
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- just received by email. Blue highlighting mine. I've posted it out here as I don't see anything particularly confidential here.
