Administration - State of Play & Significant Information (L)
Jul 26, 2019 14:30:56 GMT
phd and jay2 like this
Post by star dust on Jul 26, 2019 14:30:56 GMT
Latest RSM update email popped into my in-box 26th July 2019 @ 15:01. I'm sure it will appear with the other documents on the Lendy homepage soon, in the meantime the text is quoted below:
TO ALL KNOWN INVESTORS
25 Farringdon Street
London
EC4A 4AB
United Kingdom
T +44 (0)20 32018000
F +44 (0)20 3201 8001
rsmuk.com
26 July 2019
Dear Sir/Madam
Lendy Limited ("Lendy"), Lendy Provision Reserve Limited and Saving Stream Security Holding Limited - all in Administration (together "the Companies")
I write further to our letter of 15 July 2019.
Withdrawals and Available Funds
As previously noted in our correspondence with Investors, Lendy was made subject to an asset restriction by the FCA, which has meant that payments from Lendy's bank account have been restricted and no payments will be released until a full reconciliation has been completed.
Before we, as the Joint Administrators, release any funds to Investors (which includes outstanding withdrawal of available balances, funds from the sale of security properties and the recoveries process), we are required to ensure compliance with appropriate AML legislation. An initial review of the Company's existing AML and client take-on procedures has noted deficiencies that have required to be addressed. This is ongoing, with legal advice being obtained from Fieldfisher.
Until this process is completed, the withdrawal facility will continue to be temporarily suspended on the Lendy platform. We are currently working with a number of third party providers and at this stage we cannot confirm when the matter will be concluded, however based on indicative timetables we anticipate this process will be completed by 1 October 2019. If any investors are suffering significant hardship as a result of this process please contact us at Lendy.Restructuring@rsmuk.com and we may be able to take steps to accelerate this process in individual circumstances.
Proof of Debt Form - Section 3
We are receiving a number of requests relating to the Proof of Debt form at appendix 3 of the Joint Administrators Proposals and Report dated 15 July 2019 and whether the document needs to be completed at this stage. I would like to bring your attention to the section 1.2 'Decisions requested from creditors'. Should you wish to vote on the Proposals please complete and return the Proof of Debt and Proxy form (if applicable). These documents will need to be returned to Lendy.Restructuring@rsmuk.com or via the royal mail to be received by us no later than Tuesday 30 July 2019. For postal submissions, please send to the address above.
For the information required to complete section 3 of the Proof of Debt form please go to the balance on your Lendy Platform account lendy.co.uk/my-Ioans/live and for detail of outstanding interest see
lendy.co.uk/my-Ioans/live and lendy.co.uk/my-Ioans/interest/ia-default.
Please note, the forms attached to the Joint Administrators Proposals and Report dated 15 July 2019 are for voting purposes only at this stage in the process. Creditors should note that this is not the only opportunity to submit a claim in the Administration. Any party considering themselves a creditor of Lendy is able to submit additional/amended proof of debt forms during the course of the process.
July Platform Update
This is now live.
Remote Meeting Attendance
Unfortunately, due to the logistics of the venue and the likely numbers attending, it will not be possible to put in place a facility to enable remote attendance at the meeting.
Confirmation of Model 1 vs Model 2 Loans
According to the Directors statement of affairs the Model 1 loans are as follows:
• DFL001
• PBL027
• PBL031
• PBL056
All other loans appear to be Model 2. However please note that in relation to DFL002 the Administrators understanding of the position is that DFL002 was meant to be a Model 2 loan structure but the wrong (ie Model 1) terms appeared on the website. The Administrators are taking legal advice in respect of the impact of the incorrect terms appearing on the website.
Investor or Creditor.
We are receiving a number of requests relating to whether investors are creditors. In the Joint Administrators' Proposals and Report dated 15 July 2019 section 5.3.6 'Legal advice', we provided further information on this subject. The Joint Administrators have instructed Shoosmiths LLP to review the contracted terms which govern the Model 1 and Model 2 loan Investors. Shoosmiths are seeking advice from Counsel on the matter, as the construction of the documentation containing the Company's terms and conditions is not entirely clear. Clarification of this matter will enable the Joint Administrators to determine with certainty the creditor/investor position.
As noted at section 6.1.3, however, the statement of affairs provided by the director treats Model 1 loans as creditors. We are aware that there are a number of Model 2 investors who consider themselves to have contingent claims arising from mis-sallinp and/or other breaches of contractual obligations. Our present intention is to permit Model 1 investors to vote as creditors and Model 2 investors will be permitted to vote for a nominal amount on the basis that any claims they have are unascertained, unless they are in a position to substantiate otherwise.
Once a final decision has been made on the investor and creditor position, RSM will update all investors.
Important links
RSM Website - Lendy Limited Administration
To access our website and documents relating to the Lendy Limited administration please use the following log- in details. Please ensure that when you copy and paste the web address, that the "//" remains in place, as this has been an issue with a number of investors browsers.
Web address: rsm.insolvencypoint.com
Case Code: 1084885
Password: <redacted>
Creditor Committee Guide
In the Joint Administrators Proposals and Report dated 15 July 2019 we discussed the forming of a creditors' committee in section 1.2 Decisions requested from creditors and where more information was available at www.R3.org.uk. For those that were unable to find the guide, here is the link
www.r3.org.ukl/media/documents/publications/professional/R3-Guide-to-Creditors-Committees.pdf
Yours faithfully
for and on behalf of
Lendy Limited
RSM Restructuring Advisory LLP
Joint Administrator
lendy.restructuring@rsmuk.com
Direct line: 02038589653
25 Farringdon Street
London
EC4A 4AB
United Kingdom
T +44 (0)20 32018000
F +44 (0)20 3201 8001
rsmuk.com
26 July 2019
Dear Sir/Madam
Lendy Limited ("Lendy"), Lendy Provision Reserve Limited and Saving Stream Security Holding Limited - all in Administration (together "the Companies")
I write further to our letter of 15 July 2019.
Withdrawals and Available Funds
As previously noted in our correspondence with Investors, Lendy was made subject to an asset restriction by the FCA, which has meant that payments from Lendy's bank account have been restricted and no payments will be released until a full reconciliation has been completed.
Before we, as the Joint Administrators, release any funds to Investors (which includes outstanding withdrawal of available balances, funds from the sale of security properties and the recoveries process), we are required to ensure compliance with appropriate AML legislation. An initial review of the Company's existing AML and client take-on procedures has noted deficiencies that have required to be addressed. This is ongoing, with legal advice being obtained from Fieldfisher.
Until this process is completed, the withdrawal facility will continue to be temporarily suspended on the Lendy platform. We are currently working with a number of third party providers and at this stage we cannot confirm when the matter will be concluded, however based on indicative timetables we anticipate this process will be completed by 1 October 2019. If any investors are suffering significant hardship as a result of this process please contact us at Lendy.Restructuring@rsmuk.com and we may be able to take steps to accelerate this process in individual circumstances.
Proof of Debt Form - Section 3
We are receiving a number of requests relating to the Proof of Debt form at appendix 3 of the Joint Administrators Proposals and Report dated 15 July 2019 and whether the document needs to be completed at this stage. I would like to bring your attention to the section 1.2 'Decisions requested from creditors'. Should you wish to vote on the Proposals please complete and return the Proof of Debt and Proxy form (if applicable). These documents will need to be returned to Lendy.Restructuring@rsmuk.com or via the royal mail to be received by us no later than Tuesday 30 July 2019. For postal submissions, please send to the address above.
For the information required to complete section 3 of the Proof of Debt form please go to the balance on your Lendy Platform account lendy.co.uk/my-Ioans/live and for detail of outstanding interest see
lendy.co.uk/my-Ioans/live and lendy.co.uk/my-Ioans/interest/ia-default.
Please note, the forms attached to the Joint Administrators Proposals and Report dated 15 July 2019 are for voting purposes only at this stage in the process. Creditors should note that this is not the only opportunity to submit a claim in the Administration. Any party considering themselves a creditor of Lendy is able to submit additional/amended proof of debt forms during the course of the process.
July Platform Update
This is now live.
Remote Meeting Attendance
Unfortunately, due to the logistics of the venue and the likely numbers attending, it will not be possible to put in place a facility to enable remote attendance at the meeting.
Confirmation of Model 1 vs Model 2 Loans
According to the Directors statement of affairs the Model 1 loans are as follows:
• DFL001
• PBL027
• PBL031
• PBL056
All other loans appear to be Model 2. However please note that in relation to DFL002 the Administrators understanding of the position is that DFL002 was meant to be a Model 2 loan structure but the wrong (ie Model 1) terms appeared on the website. The Administrators are taking legal advice in respect of the impact of the incorrect terms appearing on the website.
Investor or Creditor.
We are receiving a number of requests relating to whether investors are creditors. In the Joint Administrators' Proposals and Report dated 15 July 2019 section 5.3.6 'Legal advice', we provided further information on this subject. The Joint Administrators have instructed Shoosmiths LLP to review the contracted terms which govern the Model 1 and Model 2 loan Investors. Shoosmiths are seeking advice from Counsel on the matter, as the construction of the documentation containing the Company's terms and conditions is not entirely clear. Clarification of this matter will enable the Joint Administrators to determine with certainty the creditor/investor position.
As noted at section 6.1.3, however, the statement of affairs provided by the director treats Model 1 loans as creditors. We are aware that there are a number of Model 2 investors who consider themselves to have contingent claims arising from mis-sallinp and/or other breaches of contractual obligations. Our present intention is to permit Model 1 investors to vote as creditors and Model 2 investors will be permitted to vote for a nominal amount on the basis that any claims they have are unascertained, unless they are in a position to substantiate otherwise.
Once a final decision has been made on the investor and creditor position, RSM will update all investors.
Important links
RSM Website - Lendy Limited Administration
To access our website and documents relating to the Lendy Limited administration please use the following log- in details. Please ensure that when you copy and paste the web address, that the "//" remains in place, as this has been an issue with a number of investors browsers.
Web address: rsm.insolvencypoint.com
Case Code: 1084885
Password: <redacted>
Creditor Committee Guide
In the Joint Administrators Proposals and Report dated 15 July 2019 we discussed the forming of a creditors' committee in section 1.2 Decisions requested from creditors and where more information was available at www.R3.org.uk. For those that were unable to find the guide, here is the link
www.r3.org.ukl/media/documents/publications/professional/R3-Guide-to-Creditors-Committees.pdf
Yours faithfully
for and on behalf of
Lendy Limited
RSM Restructuring Advisory LLP
Joint Administrator
lendy.restructuring@rsmuk.com
Direct line: 02038589653