This is a new thread created for the FSAG to post updates.
We (FundingSecure Action Group) now have opened channels of communications with the administrators C*&*o, the legal firm offering advice to C* (specialist in debt recovery) and the ex-Directors.
1. Any members who has any questions for either C*&*o or the law firm assisting in the administration, please forward them to me, by PM. The questions will be collated in a general group of questions to be sent to the administrators and their law firm at the start of next week. CG will then respond to the main set of queries in their next FAQ update.
Please note: They will not entertain individual questions/concerns at this time, however they will entertain “General queries” or queries on process that can be placed into the next FAQ.
2. C*&*o are seeking to provide their mandatory statement well within the 8 weeks’ time limit, hopefully within the next 2 weeks.
3. C*&*o have advised that the various trusts holding the ringfenced assets will need Court approval to be managed, liquidated and returned to lenders. An email will be sent out to all lenders regarding this matter in due course. A positive response will be required from the lenders to facilitate and expedite this matter. Please bear this in mind when reading their request.
Request for Information from Funding Secure Investors
Funding Secure Action Group (FSAG) would like to request the following information input from investors/lenders/creditors to enable us to assemble a representative overview of problematic FS loans and events which may cause, or have caused, losses to investors.
We need this information to justify a request to CG&Co, (the appointed administrator of FS), to allow a meeting to be held to appoint a creditors committee as part of the administration.
Without a creditors team on board at the administrators, we will have no oversight nor say whatsoever in how they administer and process our funds.
The administrators are soon to make a Court request to allow them access to ALL assets as held by the security trustees, i.e. our assets. We need the administrators to make the application, otherwise our asserts will remain effectively frozen. Once they obtain the Court order, they will have access to the securities to wind down our loans, realise the assets and finally distribute the proceeds to lenders. The administrators and their lawyers will take their fees out of the proceeds. Their slice, and we have no idea as to how large or small it might be, needs to be supervised. The only supervision mechanism open for the lenders will be from the creditors committee.
Please contact the FSAG team through one of the methods listed at the bottom of this message. All information received will remain unattributed and confidential when pulling together our overview. Please avoid any defamatory content.
We would be grateful for copies of any evidence, correspondence or other material you have available prior to administration with FS, FOS or FCA where you have highlighted your concerns but these have not been adequately redressed.
Have you invested in any loans where you feel you were misled or mis-sold, for example:
• The loan description was factually incorrect, or
• The loan valuation was substantially incorrect, or
• Charges on assets which you believed were in place were not, or
• The location and/or possession of the asset in the case of pawnbroking type loans was not as expected or described in the loan details, or
• Invested in the FS30 product weeks before collapse, especially if you are classified as a “retail” client by the FCA?
Have you invested in any loans where the execution, ongoing monitoring or renewal of the loan by FS has not been carried out correctly, professionally and with appropriate due care and diligence as expected by a regulated firm, for example:
• The loan monitoring was deficient and issues leading to default of the loan could have been circumvented with reasonable care and appropriate monitoring by FS, or
• The use of loan amounts by the borrower was not for the originally intended purpose, or
• Loan tranches were released on property development without proper stage completion targets being met, or
• The borrower hid, disposed or raised further charges on the asset during the loan period which could have been uncovered or prevented by appropriate intervention or adequate monitoring of the loan by FS, or
• The borrower failed to pay back the loan in accordance with the loan term but was not adequately chased for repayment or the loan put into default in a reasonable timeframe after completion of the loan term, or
• The borrower never had any means to pay back the loan which should have been determined, and the loan never issued in the first instance, or
• Inadequate due diligence was performed on the borrower by FS where issues relating to the borrower’s credit history or conduct would have reasonably precluded issuing the loan, or at least should have been highlighted to investors?
Have you experienced any other failing in the duty of FS not covered above which has contributed to losses (financial or otherwise) or potential losses on individual loans for example:
• Breach of fiduciary duty
• Gross negligence
• Failure to communicate
• Conflict of Interest between FS and any borrowers
• Conflict of Interest between any Directors at FS and any projects listed for funding?
The information gathered in this exercise will be collated and used to make representation to the administrators on behalf of Funding Secure investors in an attempt to further safeguard your assets.
We apologies that we cannot offer any more specifics at this moment, but from comms with the administrators and their legal team, there is likely to be a pertinent update being sent out to the lenders next week, so keep a watch in your in-box and especially spam folders.
IMPORTANT UPDATE ----- Form Completion and Voting for CG&Co Creditors Committee
****** All information posted without any liability *******
Please note: this is not advice or recommendation; we leave the decision to everyone concerned as to how they decide to fill in their own forms. If in doubt, please see your accountant or Solicitor/lawyer to assist YOU in completing YOUR forms.
As we have been contacted many times, it is clear that there is some ambiguity or confusion in how to exactly fill in the forms that were emailed by CG&Co. For those who have not received any forms, we have uploaded a set to FSAG on facebook. Please find a copy in the “Recent Group Files”.
As we outlined earlier, we are not allowed [by law] to explain or advise on how to complete the forms that CG&Co have sent along to all lenders of Funding Secure. Therefore, we have taken the decision to post our own forms [with a few notes on them], for all to view. Please see the "FB EXPLANATION regarding my form completion 17.11.2019" file in the files section. All further copies of my draft forms are also included in that section.
Thank you Mucho P2P, your efforts are VERY much appreciated.
Whilst I managed to swerve Lendy, I got holed below the waterline by Collateral, and Funding Secure hasn't helped, plus I have a couple of other matters imploding on me at the moment so you and your colleague's work makes my life easier and a bit less stressful.
As can be seen, we are nearly there with our target raise, and only in just 24 hours, an incredible feat achieved.
As I write, Stevens-Bolton are being engaged to assist us on a legal representation basis.
We have heard from the administrators that they will be treating all lenders account values as such:
“The voting will be calculated by reference to the quantification of their respective loans – ie by gross value as this seems to be the only fair and consistent way to approach the issue of the Creditors Committee.”
So please, if you have note completed your proxy forms, please do so.
At the bottom of the proxy form, place my name MARC MASON, if you wish for your votes to go to me to represent you at the credit committee. Naturally, you are free to choose whoever you want.
Please see the above example in the RECENT GROUP FILES, named “Proxy form Nomination” for indicative details on how to complete that section alone. This info is posted on our Facebook page at: www.facebook.com/groups/626220967911432/
I have heard that the administrators are currently working on the individual loan "updates" and these should be published on FS website in the next few days.
Great news. Now all we need is them all to be the same. “ Your funds plus interest will be in your account within 3 weeks”
Nice one Godanubis, I do not think that Xmas is coming around that fast again. AML has started, and soon advice from Counsel will be sought. After which, I hope to see some transfer out of my FS account and to my bank. I do not have a time line for the above yet.