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Post by defaultinator5000 on Oct 23, 2019 14:18:09 GMT
Sad and frustrated is probably a fair reflection of my thoughts today. ...
I am currently reading Burton Malkiel's "A Random Walk Down Wall Street" and when I read his description of financial bubbles, I immediately recognized the p2p sector and that the mugs in this game are us, investors in these shambles of a sector. The sector is swarming with well-versed fraudsters experienced at extracting funds from the unsuspecting public and employees in p2p companies with grossly overvalued sense of importance and competence. Unfortunately, this book appeared some 2.5 years too late in my hands.
I am taking a massive loss with the collapse of FS. However, I will gladly accept it if it means that the general public will be scared away from this extremely risky sector packaged as child's play and avoid the mistakes I did. Personally, I feel no remorse because I have been expecting this moment to come for a while.
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shimself
Member of DD Central
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Post by shimself on Oct 23, 2019 14:21:10 GMT
I've got about 10K left in, all of which are loans that still don't look so bad (? Barnoldswick?). The acid test for p2p, is it possible to have an orderly rundown, as per FCA rules, or is it always a feeding frenzy for the liquidators/administrators?
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Post by andrews on Oct 23, 2019 14:25:00 GMT
I am a sizeable investor in four loans intermediated by FundingSecure, all of which are overdue, and for all of which, FS has already started recovery actions. Like others here, I have a strong interest in protecting my interests, as FS goes into Administration.
If anyone here intends to set up an Investors/Lender Action Group [as opposed to an action group for those owed money by the company itself], then please post here. I would like to join. I am based in London.
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pip
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Post by pip on Oct 23, 2019 14:28:16 GMT
I'm slightly surprised anybody wants to be an administrator for a p2p company. Just imagine thousands of angry customers constantly bombarding you for updates, action groups set up etc. That's not to mention trying to manage a loan book of hundreds of late loans and ongoing legal cases.
Sounds like a recipe for disaster if you ask me. Suspect the administrator will try, correctly in my opinion, to make things as simple as possible. Sell off the loan book, wind the thing up, take their fees and return anything left to investors on a pari passu basis. Only option really, can't see them wanting to have a team winding down the loanbook for years and dealing with pesky complaints from the likes of us.
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Garage246
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Post by Garage246 on Oct 23, 2019 14:32:26 GMT
If it really can be a professionally managed run off then it's exactly what we've all been wanting, just under another name. However, there is always a cost to a speedy and professional resolution.... Oh don't I know it. BDO partners are sure making a pretty penny off the backs of many of us here. They are not on my Christmas Card list. Best way to prevent this is for lenders to insist on being treated as creditors and demanding a creditor meeting and the formation of a creditor committee. The CC then can control the administrators budget. See the other thread on this, but the Lendy Action Group have got their act together on this and have a creditors committee of investors. Really important in my view to avoid a situation like COL. There is a template letter to send to the administrators if you are so inclined on the other thread.
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petrichory
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Post by petrichory on Oct 23, 2019 14:42:33 GMT
One thing to note is that AFAICS FS were the security trustee, no separate entity as per most other platforms. Relevance or not TBD Does this mean that control of the security reverts back to lenders now that FS is gone?
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blender
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Post by blender on Oct 23, 2019 15:09:16 GMT
What about poor Adrian? This could mean the end of the Funding Suckers league table. Spare a thought, please.
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Garage246
Member of DD Central
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Post by Garage246 on Oct 23, 2019 15:55:01 GMT
One thing to note is that AFAICS FS were the security trustee, no separate entity as per most other platforms. Relevance or not TBD Does this mean that control of the security reverts back to lenders now that FS is gone? Don't think so and it hasn't done in the case of Lendy. The administrators are still in charge and have the agency for managing our investments. The only way to get some control would be a creditors committee AFAIK.
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upland
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Post by upland on Oct 23, 2019 17:18:39 GMT
Cannot say that I am surprised. Activity in my remaining holdings being almost non existent. I doubt that the administrators could be slower albeit a little more expensive.
What I dont understand is how did they get another investor on board so recently and to take such a big stake (or have I got it wrong) ?
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Post by ron on Oct 23, 2019 17:24:31 GMT
I see that this afternoon there has been a loan update (1222487071). I think hopefully there will be some continuity in the operations, a full cooperation of the previous management, and a speed-up in the recovery effort. There are very complex cases such as the art loans etc., but also some low-hanging fruits that could be defaulted and realised in a matter of months.
I'm not sure what the administrators' fees will be, but assuming GBP 1m p.a., it shouldn't be too large a hit for investors, given GBP 80m of loans outstanding, plus accrued interest - I imagine c. 5% of the notional.
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Post by mrclondon on Oct 23, 2019 17:25:54 GMT
Very early signs that we may have greater visibility during this wind up than at COL & L.
Just had a partial (early) repayment of a large jewellery loan credited (1222487071B repaid, 1222487071 residual balance)
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mrk
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Post by mrk on Oct 23, 2019 18:09:41 GMT
So that's the third platform to go into administration out of the 10 shown in the main P2x sites board. One could almost infer that a platform is much more likely to fail if it's listed in the main board rather than in a More P2x Sites sub-board. |
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arby
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Post by arby on Oct 23, 2019 18:20:21 GMT
Very early signs that we may have greater visibility during this wind up than at COL & L.
Just had a partial (early) repayment of a large jewellery loan credited (1222487071B repaid, 1222487071 residual balance)
Do you mind saying if you got the usual email about this, or did you just log in and see it? Just wondering how much has been disrupted with usual processes.
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kermie
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Post by kermie on Oct 23, 2019 18:23:11 GMT
Telegraph article:
No revelations. Apologies if I missed this elswhere on the board.
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Post by mrclondon on Oct 23, 2019 18:29:06 GMT
Very early signs that we may have greater visibility during this wind up than at COL & L.
Just had a partial (early) repayment of a large jewellery loan credited (1222487071B repaid, 1222487071 residual balance)
Do you mind saying if you got the usual email about this, or did you just log in and see it? Just wondering how much has been disrupted with usual processes. Usual pair of emails "your investment has been split" folowed by "your investment has been completed and closed"
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