jane
Posts: 144
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Post by jane on Jan 4, 2023 13:48:32 GMT
That's a really poor analogy. Investors should be returned as much of the money they lent to borrowers as possible before taking a haircut. If the admin has costs in doing the recovery they should take it from the cash in the business account not from lenders money that isn't theirs. Unfortunately that isnt how it works in Insolvency law. The admin are charging costs & fees for doing a job, recovering trust assets & that has to be paid by those who benefit from the work. The general estate is for the benefit of creditors, creditors get no benefit from the recovery of trust assets so using money from the general estate is unfair. For M2 lenders, in relation to their specific loans it doesnt make any difference if the general estate has £10 or £10m, the cost of recovering the loans is the cost of recovering the loans, same as the cost of fixing a pipe is the cost of fixing a pipe whether done by Charlie Mullins or Dave the Pipe. The general estate is only relevant for M2 lenders as creditors as they will have a claim for at least their outstanding balance. The cost of fixing a pipe by Mullins is about the same as Dave the Pipe because Dave the Pipe (and all the other one man bands) would be undercutting him and taking all his business otherwise. If Mulliins could charge 4x the amount without losing business then he would. Plastic surgery doesnt pay for itself. The administrator does not have the same problem as Mullins. They effectively have a monopoly. They can charge whatever they want.
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adrian77
Member of DD Central
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Post by adrian77 on Jan 4, 2023 15:39:26 GMT
exactly - and don't they know it!
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