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Post by ss5678 on May 29, 2019 8:22:23 GMT
Hi All,
Just a thought now that lendy has gone into administration. IS it possible for us as lender/creditor to form a rescue proposal to take control of lendy? By forming a team of people who have the right experience/expertise in p2p business, I sincerely think that it is much better off for everyone.
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Greenwood2
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Post by Greenwood2 on May 29, 2019 10:22:07 GMT
Hi All, Just a thought now that lendy has gone into administration. IS it possible for us as lender/creditor to form a rescue proposal to take control of lendy? By forming a team of people who have the right experience/expertise in p2p business, I sincerely think that it is much better off for everyone. Poisoned chalice and herding cats come to mind. But theoretically a possibility I suppose, but we don't yet know what the financial position of Lendy is or how bad the loan book is. Someone might have to put up significant funds to even initiate something.
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Post by supernumerary on May 29, 2019 11:00:20 GMT
Hi All, Just a thought now that lendy has gone into administration. IS it possible for us as lender/creditor to form a rescue proposal to take control of lendy? By forming a team of people who have the right experience/expertise in p2p business, I sincerely think that it is much better off for everyone. An interesting idea, BUT it would take some organising to do so...  Therein lies the problem, just WHO, in the 22,661 number of registered lenders, would be prepared to participate in forming a Committee to do that?  Anything is possible, BUT it would be a MASSIVE uphill task...
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mj
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Post by mj on May 29, 2019 11:49:22 GMT
It might be better to get representatives of lenders into the administration process, so they can see what's going on and report back.
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Post by ss5678 on May 29, 2019 11:59:14 GMT
What is administration?
Administration is an insolvency process by which a company is placed under the control of an insolvency practitioner to enable him to achieve objectives laid down by statute.
The first objective of any administration is to rescue the company (as opposed to the business that the company carries on) so that it can continue trading as a going concern (paragraph 3(1)(a), Schedule B1, Insolvency Act 1986 (IA 1986)). If the rescue of the company is impossible, the administrator must aim to achieve a better result for the company's creditors as a whole than would be likely if the company were put into liquidation (paragraph 3(1)(b), Schedule B1). If the administrator cannot achieve a better result for creditors as a whole, the purpose of the administration is to realise the company's property to make a distribution to the company's secured or preferential creditors (paragraph 3(1)(c), Schedule B1).
Anyone know that it is actually Liam Brooke who apply to court to ask for Administrator?
I think RSM should have made announcement publicly by now what is their intention. It would be scandalous if FCA allows Lendy to just fail without any plan to rescue or find a buyer.
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wuzimu
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Post by wuzimu on May 29, 2019 12:01:05 GMT
I can't see any reason at all why lenders would want Lendy. This suggestion is a misunderstanding of the game thats playing out
Lendy is simply an agent, with apparently a fatal liability it cannot meet.
If, which I do hope, RSM pragmatically accept that lenders are creditors of Lendy to the extent of their unrecovered capital and contracted interest, (due to breaches in agency and trust) then the likely deficit on the administrators balance sheet will be £10's of millions in the red
If any lenders wonder whether taking over things might be good, the only things worth 'taking over' might be the security for the loans held in trust for lenders by Saving Stream Security Holding Ltd.
I don't suggest this is a good idea, too early to say, but SSSH is the only place any where any value for lenders is to be found.
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Greenwood2
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Post by Greenwood2 on May 29, 2019 12:44:51 GMT
I can't see any reason at all why lenders would want Lendy. This suggestion is a misunderstanding of the game thats playing out
Lendy is simply an agent, with apparently a fatal obligation it cannot meet.
If, which I do hope, RSM pragmatically accept that lenders are creditors of Lendy to the extent of their unrecovered capital and contracted interest, then I should think the likely deficit on the administrators balance sheet will be £10's of millions in the red
If any lenders wonder whether taking over things might be good, the only things worth 'taking over' might be the security for the loans held in trust for lenders by Saving Stream Security Holding Ltd.
I don't suggest this is a good idea, too early to say, but SSSH is the only place any where any value for lenders is to be found.
I would have thought the object would be to buy Lendy as a going concern and continue to run the loan book on behalf of lenders. The administrators might take a very low offer, but much more information would be required to decide if it was a practical possibility. I don't think lenders are creditors of Lendy, lenders contracts are with the borrowers (apart from a few early loans) and after the failure of Lendy there are FCA approved run down procedures that require it to be managed in run down by the parties named, who (should) have ring fenced funds to do this.
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Post by ss5678 on May 29, 2019 13:41:46 GMT
I can't see any reason at all why lenders would want Lendy. This suggestion is a misunderstanding of the game thats playing out
Lendy is simply an agent, with apparently a fatal obligation it cannot meet.
If, which I do hope, RSM pragmatically accept that lenders are creditors of Lendy to the extent of their unrecovered capital and contracted interest, then I should think the likely deficit on the administrators balance sheet will be £10's of millions in the red
If any lenders wonder whether taking over things might be good, the only things worth 'taking over' might be the security for the loans held in trust for lenders by Saving Stream Security Holding Ltd.
I don't suggest this is a good idea, too early to say, but SSSH is the only place any where any value for lenders is to be found.
I would have thought the object would be to buy Lendy as a going concern and continue to run the loan book on behalf of lenders. The administrators might take a very low offer, but much more information would be required to decide if it was a practical possibility. I don't think lenders are creditors of Lendy, lenders contracts are with the borrowers (apart from a few early loans) and after the failure of Lendy there are FCA approved run down procedures that require it to be managed in run down by the parties named, who (should) have ring fenced funds to do this. That is a good point, rather than asking the fat-cat-like Administrators to run the loan book, lenders should step in to run them, which is more cost-effective. I think the failure of lendy lies in the borrowers' failure to repay the loans on-time. While borrowers may come with different valid/invalid reasons to delay the loan repayments, Lendy should take a stronger stance to seize control of the borrowers, have the right resources to complete the property development projects themselves, or dispose the security quickly. RSM is just a group of accountants and they have no experience/expertise in property development and p2p business. I sincerely hope the more experienced lenders on this forum/large stake in Lendy can step in to take control of Lendy before it ends up into liquidation. I will be able to provide any free resources I have on my side to assist to rescue this crisis. I believe this is "win-win" for everyone.
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garfield
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Post by garfield on May 29, 2019 14:08:41 GMT
I think the failure of lendy lies in the borrowers' failure to repay the loans on-time. It's not just the borrowers who fail to repay on time!!!
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Post by Deleted on May 29, 2019 14:10:05 GMT
One of the more interesting issues about the Administration team is the inclusion of this guy. www.rsmuk.com/our-people/mark-wilsonHave a very careful read of this guys bio and agenda. Do you really think that a bunch of random lenders could replicate what he brings to the table? |
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Greenwood2
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Post by Greenwood2 on May 29, 2019 14:17:57 GMT
One of the more interesting issues about the Administration team is the inclusion of this guy. www.rsmuk.com/our-people/mark-wilsonHave a very careful read of this guys bio and agenda. Do you really think that a bunch of random lenders could replicate what he brings to the table? Realistically a lender buyout is extremely unlikely, but the administrators would have to sort out the mess first in any case.
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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 May 29, 2019 14:29:37 GMT
Hi All, Just a thought now that lendy has gone into administration. IS it possible for us as lender/creditor to form a rescue proposal to take control of lendy? By forming a team of people who have the right experience/expertise in p2p business, I sincerely think that it is much better off for everyone. Hi if you think Brexit and a Scottish referendum are a shambles then try and get a group of people from all walks of life with different needs and wants from their money to agree to anything. Would voting be pro rata ? Or one Person 1 vote ?
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11025
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Post by 11025 on May 29, 2019 14:39:13 GMT
One of the more interesting issues about the Administration team is the inclusion of this guy. www.rsmuk.com/our-people/mark-wilsonHave a very careful read of this guys bio and agenda. Do you really think that a bunch of random lenders could replicate what he brings to the table?
That can't be a bad thing .
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Post by grotdog on May 29, 2019 15:16:21 GMT
Well I was threatened with being thrown off this forum after being very critical of lendy and management, and predicting just this event.
I also suggested the RICS valuations needed to be challenged - and guess what - they started to do so and sued successfully at least once. I was right.
I also suggested that individuals got together to sue the company and take control of the assets independently - ie, to sue the individual borrowers.
I'm still happy to do so - the administrators are fat cats who will suck every dollar out of it - and anyone who thinks they will see a single pound of return from the administrators needs their head examined.
Contact me if you are interested in taking individual action against the property owners through the courts - I'm happy to act as part of a group..
No doubt the admins will say that this post is in some way inappropriate - right now the lenders need to take whatever action to secure their money - which means securing those assets before the administrators do.
I can be contacted through Heritage House Consulting if anyone wants. No doubt the admins wont allow my email to be visible - Why, I can only speculate.
Good luck everyone.
Pete
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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 May 29, 2019 15:18:21 GMT
One of the more interesting issues about the Administration team is the inclusion of this guy. www.rsmuk.com/our-people/mark-wilsonHave a very careful read of this guys bio and agenda. Do you really think that a bunch of random lenders could replicate what he brings to the table?
That can't be a bad thing . .
With Lendy being in administration I'm not sure about any pending legal issues they may have to be suspended.
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