Greenwood2
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Post by Greenwood2 on Jul 9, 2019 20:04:01 GMT
No doubt, the administrator will make more in winding down Lendy due to the time involved and their cut of fees, than a one-off sale, which could be completed in a short time span in comparison to a protracted wind-down. It would now be nice to hear the administrators side for not engaging in such talks that would return the lenders capital in a shorter time span. Are you talking about someone buying Lendy outright? At what pence in the pound? Or selling each loan off, I doubt at full value, rather than let them pay off to schedule, where possible.
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cwah
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Post by cwah on Jul 9, 2019 20:55:36 GMT
No doubt, the administrator will make more in winding down Lendy due to the time involved and their cut of fees, than a one-off sale, which could be completed in a short time span in comparison to a protracted wind-down. It would now be nice to hear the administrators side for not engaging in such talks that would return the lenders capital in a shorter time span. Are you talking about someone buying Lendy outright? At what pence in the pound? Or selling each loan off, I doubt at full value, rather than let them pay off to schedule, where possible. If I could just get back all my cash locked in today and forget the 2+ years of missing interest, I'd still take it in a heartbeat!
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Mucho P2P
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Post by Mucho P2P on Jul 9, 2019 21:20:00 GMT
Are you talking about someone buying Lendy outright? At what pence in the pound? Or selling each loan off, I doubt at full value, rather than let them pay off to schedule, where possible. If I could just get back all my cash locked in today and forget the 2+ years of missing interest, I'd still take it in a heartbeat! Wouldn't we all 
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quidco
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Post by quidco on Jul 10, 2019 6:36:45 GMT
No doubt, the administrator will make more in winding down Lendy due to the time involved and their cut of fees, than a one-off sale, which could be completed in a short time span in comparison to a protracted wind-down. It would now be nice to hear the administrators side for not engaging in such talks that would return the lenders capital in a shorter time span. How do you know lenders would get their money back faster? Any buyer would still have to get borrowers to stump up or acquire and sell the assets. Well I assume they buy the loan book with a haircut to investors and we get some money back as soon as the sale has gone through.
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boundah
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Post by boundah on Jul 10, 2019 17:06:57 GMT
How do you know lenders would get their money back faster? Any buyer would still have to get borrowers to stump up or acquire and sell the assets. Well I assume they buy the loan book with a haircut to investors and we get some money back as soon as the sale has gone through. I don't know whether the wannabe buyers are proposing buying the whole loanbook (from lenders) or just the platform (from the administrators). If the former, I'd happily take a haircut. If the latter, we'd be in exactly the place we are now, except that the acquirer may be better at squeezing the sponge. Maybe Mucho P2P has some idea what the plans are? Without giving away anything commercially sensitive, obviously.
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Mucho P2P
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Post by Mucho P2P on Jul 10, 2019 17:13:51 GMT
Well I assume they buy the loan book with a haircut to investors and we get some money back as soon as the sale has gone through. I don't know whether the wannabe buyers are proposing buying the whole loanbook (from lenders) or just the platform (from the administrators). If the former, I'd happily take a haircut. If the latter, we'd be in exactly the place we are now, except that the acquirer may be better at squeezing the sponge. Maybe Mucho P2P has some idea what the plans are? Without giving away anything commercially sensitive, obviously. - the parts that seem to interest other P2Ps are the loans and not the platform. Having said that, I am aware of several foreign buyers who would like an entire platform but none of them mentioned the Lendy platform.
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quidco
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Post by quidco on Jul 10, 2019 17:18:11 GMT
I don't know whether the wannabe buyers are proposing buying the whole loanbook (from lenders) or just the platform (from the administrators). If the former, I'd happily take a haircut. If the latter, we'd be in exactly the place we are now, except that the acquirer may be better at squeezing the sponge. Maybe Mucho P2P has some idea what the plans are? Without giving away anything commercially sensitive, obviously. - the parts that seem to interest other P2Ps are the loans and not the platform. Having said that, I am aware of several foreign buyers who would like an entire platform but none of them mentioned the Lendy platform. I wonder if Lendy own the code. It could easily be rebranded. Could be of at least somew value.
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thedog
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Post by thedog on Jul 10, 2019 18:30:00 GMT
I don't know whether the wannabe buyers are proposing buying the whole loanbook (from lenders) or just the platform (from the administrators). If the former, I'd happily take a haircut. If the latter, we'd be in exactly the place we are now, except that the acquirer may be better at squeezing the sponge. Maybe Mucho P2P has some idea what the plans are? Without giving away anything commercially sensitive, obviously. - the parts that seem to interest other P2Ps are the loans and not the platform. Having said that, I am aware of several foreign buyers who would like an entire platform but none of them mentioned the Lendy platform. Mucho P2P When you say "...interest other P2Ps are the loans" do you mean the contracts to manage the loans or the loans themselves?
As I see it there are 3 broad possible deals here: (1) buy the business (chiefly the IP, systems and management contracts) - use the Lendy IP and platform to originate new business. I'd assume they'd want to rebrand given that the existing brand is (cough) "tarnished". (In theory could buy just the platform without the contracts to manage these loans but would seem pretty daft to do that).
(2) buy the management contracts for the loans - move the loans onto a different existing platform, capture the economies of scale in management. (3) buy the loans themselves - a MUCH MUCH bigger and more complex deal. You need a lot of capital to buy out the loans and probably leverage to make it worthwhile. Each loan would need a different sales price reflecting the economic value of each loan.
1 and 2 would be deals with RSM as Administrator. Wouldn't have thought it would cost a whole lot in the context - after all unless they are sold these are literally worthless to the Creditors.
Administrators have a legal duty to maximise returns to Creditors not Investors. (I have seen comment that we might be Creditors with respect to deals under earlier drafts of the T&Cs but I have no idea if this is correct. We might also be Creditors for our shortfalls if we can argue Lendy are legally culpable as missold etc. Or maybe under other sceanarios - very speculative at this stage. In each case RSM will have a view, based on legal advice, which presumably we will learn in a few weeks but it's not impossible it is challenged).
In principle 1 and 2 are identical as far as we are concerned and leave us in the same position as now just with a new party managing the loans - hopefully better than Lendy. Other than the extent to which we were considered Creditors we wouldn't see any of the price paid (and I wouldn't expect much even then). NB Unless someone buys the actual Company (or is exceptionally badly legally advised on how they structure the deal....) any mis-selling / legal etc claim related to the shortfalls will NOT travel to the new operators. It's a claim as a Creditor in the insolvency of Lendy.
3 would be a series of deals with RSM as Back Up Servicer to the Loan Book. Potentially could even be for some loans and not others. Needs a lot more money as it's based on the loan book. Funds, after costs, would flow to us but they will be rip-your-face-off prices....
I'd have thought 1 and 2 could attract other P2P operators and I would GUESS is what is being discussed in the article. 3 would probably be a hedge, PE or RE fund that sees an opportunity to buy assets on the cheap. (Of course the other option where the borrower is themselves in Administration would be to buy the underlying collateral out of that Admin dealing with that Administrator not RSM, with funds ultimately flowing to us).
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averageguy
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Post by averageguy on Jul 14, 2019 15:23:17 GMT
Sometime this week we should know a lot more re the administration and I expect a individual loan update
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rocky1
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Post by rocky1 on Jul 14, 2019 16:28:08 GMT
i have been wondering if RSM still have liam and former directors available to explain their actions/non actions on all of this mess and why things were allowed to go so wrong before maximising their personal finances while lendy was burning all around them.liam/lendy must have known how bad things were when bringing on the lendy wealth[****] scheme and took many peoples money for schemes that were already doomed.not the actions of people running a FCA regulated company.i dont think liam is that bothered now and has sailed his lendy boat of into the sunset with a cargo of millions of our funds.
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micky
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Post by micky on Jul 14, 2019 19:46:51 GMT
I really hope that they are. Nervously waiting for that knock on the door.
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Post by billy169 on Jul 14, 2019 20:00:23 GMT
Will it be RSM
Will it be the police
Or will it be the big lads.?
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quidco
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Post by quidco on Jul 15, 2019 14:04:53 GMT
I like that RSM have pinned their investor updates to the landing page of the website so that non investors and the rest of the world can read them as well.
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travolta
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Post by travolta on Jul 15, 2019 15:18:27 GMT
Will it be RSM Will it be the police Or will it be the big lads.? just Jehovahs Witnesses....
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78
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Post by 78 on Jul 15, 2019 17:02:46 GMT
Just received the 15th July 2019 letter from the administrators.
I am unclear are lenders required to submit proof of debt forms?
My understanding is that lenders are not creditors of Lendy (insolvent company) but are creditors of the individual borrowers in each case so are not creditors who need to submit a proof of debt form.
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