btc
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Post by btc on May 25, 2019 16:02:18 GMT
More money for administrators
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Monetus
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Post by Monetus on May 25, 2019 16:03:54 GMT
so it transpires that the "banking issue and the 2fa" was actually them not having the money in the bank to pay their dues, more BS ive removed the 2fa from L while the service is still available, not taking the chance it goes off line again Once again I'm speculating a great deal here but it could be that they were waiting on the fees and interest from the DFL012 HQ repayment (and possibly even the sale of the freehold) to get the funds required to continue operating - the timescales certainly match up. I guess we'll have more of an insight when we find out how the Lendy coffers look in the administration report. The fact that they were forced to borrow cash from Metro bank in exchange for a charge over the provision fund doesn't fill me with confidence that they were particularly liquid.
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jane
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Post by jane on May 25, 2019 16:19:24 GMT
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11025
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Post by 11025 on May 25, 2019 16:21:55 GMT
so it transpires that the "banking issue and the 2fa" was actually them not having the money in the bank to pay their dues, more BS ive removed the 2fa from L while the service is still available, not taking the chance it goes off line again Once again I'm speculating a great deal here but it could be that they were waiting on the fees and interest from the DFL012 HQ repayment (and possibly even the sale of the freehold) to get the funds required to continue operating - the timescales certainly match up. I guess we'll have more of an insight when we find out how the Lendy coffers look in the administration report. The fact that they were forced to borrow cash from Metro bank in exchange for a charge over the provision fund doesn't fill me with confidence that they were particularly liquid. That makes sense to me too , I really didn't like the sound of the charge against the provision fund , has that broken any FCA rules ? I thought the cash was there specifically as a safety net - or did Lendy just make it up as they went along.
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Post by mikeyb999 on May 25, 2019 16:22:14 GMT
The fact that they were forced to borrow cash from Metro bank in exchange for a charge over the provision fund doesn't fill me with confidence that they were particularly liquid. When I saw the loan from Metro I thought we were pretty close to the end - I guess the reality is every time we got an interest payment Lendy were getting a cut. As the situation deteriorated their cash flow would have been drying up combined with the increased spend on legals and recoveries.
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TenKay
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Post by TenKay on May 25, 2019 16:24:23 GMT
if they couldn't even afford the 2fa service i would say its grim
when did LB actually realize the boat was sinking? only a few days ago did he post this, the only step he took is off the end of the gang plank
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Post by mikeyb999 on May 25, 2019 16:32:20 GMT
I really didn't like the sound of the charge against the provision fund , has that broken any FCA rules ? I thought the cash was there specifically as a safety net - or did Lendy just make it up as they went along. I don't know, but I wonder if Lendy couldn't spend the fund as they had advertised it as a safety net so the FCA had said it was off limits, although I'm puzzled why they would borrow (or were able to borrow) against it - why not just spend it?
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Mucho P2P
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Post by Mucho P2P on May 25, 2019 16:44:32 GMT
There are many unanswered questions, and a certain amount of in-between the lines reading is necessary here.
What we should bear in mind, for a person like Mark Wilson (Partner and Head of Fraud Investigations and Overseas Recovery specialist) to be one of the appointed Receivers, that is an indication in itself that Lendy were unlikely to be placed into Admin by Liam, but more likely the FCA.
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Post by samford71 on May 25, 2019 16:50:01 GMT
My commiserations to those who still have substantial sums trapped on the Lendy/SS platform. I hope the administration can recover some of your capital.
This is now the second financial services company that LB was a part of that has gone down in flames. Before Lendy he was investment director at Portland Financial Management Group, a company that offered investors a product paying 12% ( link).
Let's hope that investors who consider involving themselves in his new enterprise use the internet to see that a trend may be developing. Once is a mistake, twice is a pattern, three times would be a habit.
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agent69
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Post by agent69 on May 25, 2019 17:19:57 GMT
Lendy were unlikely to be placed into Admin by Liam, but more likely the FCA. Can the FCA put a company into administration?
I thought it had to be the company themselves (directors / shareholders doing it) or somebody that is owed money by them
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Mucho P2P
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Post by Mucho P2P on May 25, 2019 17:34:55 GMT
Lendy were unlikely to be placed into Admin by Liam, but more likely the FCA. Can the FCA put a company into administration?
I thought it had to be the company themselves (directors / shareholders doing it) or somebody that is owed money by them
Yes, the FCA can place a regulated company into admin, if the company looks like it is about to fail, has or is near to running out of resources (and can not show to the FCA where new resources are to be sourced from), or shareholders are refusing to support the company anymore. www.handbook.fca.org.uk/handbook/EG/13.pdfAs we are all aware, in the final weeks the FCA was closely monitoring Lendy and even limiting its capital transfers.
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jane
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Post by jane on May 25, 2019 17:37:22 GMT
Lendy were unlikely to be placed into Admin by Liam, but more likely the FCA. Can the FCA put a company into administration?
I thought it had to be the company themselves (directors / shareholders doing it) or somebody that is owed money by them
According to the FCA annoucement: "On 24 May 2019, following action taken by the FCA, Lendy Ltd, a regulated Peer-to Peer (P2P) firm, appointed Damian Webb, Phillip Rodney Sykes and Mark John Wilson of RSM Restructuring Advisory LLP as administrators" So Lendy appointed the administrators themselves, either with a big push from the FCA or the FCA restrictions on them meant they couldn't continue.
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cwah
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Post by cwah on May 25, 2019 18:11:06 GMT
Lendy didn t have any new loans for more than a year. So the fund could only go 1 way with all the lending issue.
Was it Lendy deliberate decision or was it from the FCA limitations?
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will
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Post by will on May 25, 2019 19:47:13 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.
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Post by cashmax on May 25, 2019 20:08:39 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.
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