jhamster
Member of DD Central
Posts: 107
Likes: 145
|
Post by jhamster on Jan 7, 2020 17:32:05 GMT
What happens if the administrators collapse? RSM already has once before, this ain't a good sign. Their accounts are out by millions, suddenly our fees more than double. Does this sound like a professional outfit to you? www.telegraph.co.uk/business/2020/01/06/sports-direct-auditor-rsm-reveals-10m-errors-accounts-sacking/"RSM mis-stated its profits by £6m in 2018 and by £3.8m a year earlier, resulting in a net mis-statement of £2.2m, accounts filed at Companies House show." No wonder they want more money from us, we're paying for yet more Director stupidity higher up the pecking chain now. |
|
|
|
Post by p2plender on Jan 8, 2020 0:40:40 GMT
"What happens if they collapse"
They'll not collapse. They could just auction off all their new stationary to settle any debts..
|
|
|
|
Post by Please turn me over on Jan 9, 2020 21:57:07 GMT
|
|
one21
Member of DD Central
Posts: 398
Likes: 265
|
Post by one21 on Jan 11, 2020 8:14:59 GMT
I think the income tax these vultures pay should be returned to us Lendy victims as compensation for inadequate finacial legal practice and lack of enforcement against illegal finacial practices.
|
|
one21
Member of DD Central
Posts: 398
Likes: 265
|
Post by one21 on Jan 11, 2020 8:50:31 GMT
Why are we requested to submit a proof of debt when repayments fall short, given that our balances are automatically updated on the plaform. Just more red tape @ c £500/hr!
|
|
ilmoro
Member of DD Central
'Wondering which of the bu***rs to blame, and watching for pigs on the wing.' - Pink Floyd
Posts: 11,330 
Likes: 11,549
|
Post by ilmoro on Jan 11, 2020 10:06:51 GMT
Why are we requested to submit a proof of debt when repayments fall short, given that our balances are automatically updated on the plaform. Just more red tape @ c £500/hr! Because thats the way the process works. You arent automatically eligible to be a creditor so you have to submit a claim and then the admin will verify it using the evidence available (at this point they may just review your account rather than requesting supporting docs as is normal)
|
|
shimself
Member of DD Central
Posts: 2,563
Likes: 1,171
|
Post by shimself on Jan 11, 2020 11:28:09 GMT
Why are we requested to submit a proof of debt when repayments fall short, given that our balances are automatically updated on the plaform. Just more red tape @ c £500/hr! Because thats the way the process works. You arent automatically eligible to be a creditor so you have to submit a claim and then the admin will verify it using the evidence available (at this point they may just review your account rather than requesting supporting docs as is normal) Really, even for retail investors they might get ditched and left with nothing for lack of a form filled?
|
|
ilmoro
Member of DD Central
'Wondering which of the bu***rs to blame, and watching for pigs on the wing.' - Pink Floyd
Posts: 11,330
Likes: 11,549
|
Post by ilmoro on Jan 11, 2020 11:52:59 GMT
Because thats the way the process works. You arent automatically eligible to be a creditor so you have to submit a claim and then the admin will verify it using the evidence available (at this point they may just review your account rather than requesting supporting docs as is normal) Really, even for retail investors they might get ditched and left with nothing for lack of a form filled? its possible. While the nature of the claims may well mean that RSM just decide that all investors are eligible as creditors as a result (certainly thats what LAG are seeking) I wouldnt want to make that assumption.
So far has anything gone to investors benefit? RSM's job is to maximise returns to creditors, fewer creditors means thay are more likely to achieve that goal in full.
|
|
ianj
Member of DD Central
Posts: 656
Likes: 520
|
Post by ianj on Jan 11, 2020 12:45:55 GMT
Why are we requested to submit a proof of debt when repayments fall short, given that our balances are automatically updated on the plaform. Just more red tape @ c £500/hr! Err, what request is this?
|
|
MarkT
Member of DD Central
Posts: 190
Likes: 159
|
Post by MarkT on Jan 11, 2020 12:57:38 GMT
Is there a legal time limit for submitting a 'proof of debt' form?
Like others I had assumed it's not necessary as the electronic record is clear enough, but as others have said it does make a bit more money for RSM.
|
|
KoR_Wraith
Member of DD Central
Posts: 293
Likes: 297
|
Post by KoR_Wraith on Jan 11, 2020 12:59:40 GMT
Why are we requested to submit a proof of debt when repayments fall short, given that our balances are automatically updated on the plaform. Just more red tape @ c £500/hr! Err, what request is this? Bottom of page 11: "To the extent that any Investor suffers a shortfall following the Distribution Waterfall, those Investors will be at liberty to file a proof of debt against Lendy, fully setting out their claim for the Administrators’ consideration. The Investor’s rights will not be affected by filing a proof of debt." I'm waiting for the "Distribution Waterfall" to progress further before submitting a form, due to laziness.
|
|
ianj
Member of DD Central
Posts: 656
Likes: 520
|
Post by ianj on Jan 11, 2020 13:03:31 GMT
Err, what request is this? Bottom of page 11: "To the extent that any Investor suffers a shortfall following the Distribution Waterfall, those Investors will be at liberty to file a proof of debt against Lendy, fully setting out their claim for the Administrators’ consideration. The Investor’s rights will not be affected by filing a proof of debt." I'm waiting for the "Distribution Waterfall" to progress further before submitting a form, due to laziness. Thanks. Thought I'd not received an email.....again!
|
|
sam i am
Member of DD Central
Posts: 697
Likes: 555
|
Post by sam i am on Jan 11, 2020 13:43:09 GMT
Err, what request is this? Bottom of page 11: "To the extent that any Investor suffers a shortfall following the Distribution Waterfall, those Investors will be at liberty to file a proof of debt against Lendy, fully setting out their claim for the Administrators’ consideration. The Investor’s rights will not be affected by filing a proof of debt." I'm waiting for the "Distribution Waterfall" to progress further before submitting a form, due to laziness.
I have specifically asked RSM to provide some guidance as to when a claim should be made.
We can't do it too soon because in most cases we don't know the losses yet but we don't want to leave it too late and miss out. Should we make a claim for each loan when losses are crystalised or wait until the position for our entire portfolio is known?
Unfortunately where there are legal cases attempting to recover capital by non-secured means (eg floating charges or personal guarantees) and/or legal cases against professional advisors (eg valuers) these could rumble on for years before reaching a conclusion and our ultimate losses are known.
Maybe we make a claim when the initial recovery is done and any future recoveries are sorted out as and when they happen.
But we haven't even got to the point yet where we know how lenders are going to be treated (in particular regarding outstanding contractual payments to Lendy) so we don't know the split of the pot between lenders and creditors (which includes debts claimed by lenders).
And if it's shown that there are irregularities in the manner in which Lendy acted (relating to unfair contract terms or other malpractice) I would also expect this to be resolved with lenders first (including with past loans) before creditors can claim.
I'm hoping to get some indication on these points when RSM issues the promised Q&As.
I think there's a very long way to run on this one yet.
|
|
shimself
Member of DD Central
Posts: 2,563
Likes: 1,171
|
Post by shimself on Jan 11, 2020 14:08:16 GMT
RSM's job is to maximise returns to creditors, fewer creditors means thay are more likely to achieve that goal in full. I take maximise to refer to an amount, not a percentage.
|
|
ilmoro
Member of DD Central
'Wondering which of the bu***rs to blame, and watching for pigs on the wing.' - Pink Floyd
Posts: 11,330
Likes: 11,549
|
Post by ilmoro on Jan 11, 2020 14:56:10 GMT
RSM's job is to maximise returns to creditors, fewer creditors means thay are more likely to achieve that goal in full. I take maximise to refer to an amount, not a percentage. Administrators refer to recoveries as %, ie 80p in £1 so not unreasonable to assume maximise is defined in the same terms. Getting creditors 80p in £1 is better than 50p in the £ and that can be achieved by having recovered more or having less creditors. What looks better on the CV, recovered £1m, creditors got 1p in £, or recovered £1m, creditors got 80p in £? They will follow their statutory duties. Onus is on the creditor to claim not the admin to actively seek out creditors beyond publising their appointment/contacting stakeholders.
|
|
