TheHouseCrowd gone into Administration!

"Just getting used to" -- nothing came through from THC on this, and as others have commented, they have been solidly sending out "Everything is fine, we are analysing the govt's response etc."

So, due to the diversity of products, what does it mean for people that own shares in the earlier HCP0XX HCP1XX "Buy To Let" SPVs? After all, if THC themselves are in administration, they don't *own* the houses, the SPVs (and therefore the shareholders) do.   (See edit)

Mostly, THC have been selling off these earlier investments and returning capital, some uplifts, some losses. I'm still in three of them (would have been two, but the sale fell through on HCP083 due to tenant wedged in place), with some odds and ends of "further interest" or "further uplift" when the accounts are settled.

I note with concern that HCP031 was sold, but capital has not been returned, wonder where that's got stuck?

Delayed edit to add: Email received shortly after posting the above, containing the sentence " ... The House Crowd Property (âHCPâ) special investment vehicles are also not in administration and will continue to operate as normal. "

Small sigh of relief, let's see what actually happens.

This article (www.bridgingandcommercial.co.uk/article-desc-16832_The%20House%20Crowd%20enters%20administration) states circa 3,700 active investors.  

You're right: their weekly mailings would always state everything was going hunky dory. I suspected something was very fishy, with an extraordinary 100% of both the external P2P and internal House Crowd Development property development loans I had made suffering delays of 6+ months and the updates on each loan making one excuse after another. Therefore I hadn't received a single payment, no one penny, from over sixteen different loans during the last twelve months! One can possibly understand major issues with 20% of loans, 30%, 40%, 50%, but 100%?

It demonstrates how mediocre the HC team were. In his previous role the HC COO Carl Davies was integral to the FundingSecure collapse, which says it all.

As regards your second point, their may be a contagion and HCD goes bust too - as you will be aware, a lot of/all their projects have been experiencing an avalanche of cost and time overruns, issues with contractors, delays in procuring supplies, weather issues (the latter is HC's favourite excuse and I'm sure I've read the phrase "inclement weather" used in their litany of excuses over one hundred times) etc. - but what gives me hope is that the jerk that ran THC, Frazer Fearnhead, while he has deviously deleted his associations with THC on his Facebook profile now emphasises being CEO of House Crowd Developments there and elsewhere. On his LinkedIn profile he has now changed his job title to "CEO House Crowd Developments". If he felt that HCD might also imminently fold, he might have deleted his associations with that too, but hasn't. 

Therefore, HCD may continue and, as the majority of THC's loans in recent years were to HCD, that might give a glimmer of hope to lenders to get some of their money back. Quite a few of those HCD projects have been 80%+ constructed, all or most of the houses or flats they had built already being sold, and thereby the returns from them due to be imminently realised.

The primary risk to P2P lenders getting their loans back, as has been described above, is the vultures such as the Administrators, Lawyers, valuers, agents, builders, contractors etc. siphoning off astronomical amounts of sums for themselves, as is always the tradition in this country when it comes to Administrations, and therefore there being nothing or little left in the kitty for the company's creditors. I've usually received nothing from most Administrations.

Thank you for your points. 

I suppose the fact FF still has this info on his profiles is a slight positive with regards to the continuing function of HCD, useful info. 

Whilst still operating, I don't see how any administrators etc can lay a finger on the money within HCD at present. Obviously no consolidation to the investments in THC but as the companies / vehicles are all separate it may mean that some within THC get wiped out completely due to spiralling admin costs whereas HCD continue as normal. Pure speculation, we can only wait and see how it pans out... again. 

Two points to note ... THC are minority shareholders in the development SPV so they do have an interest in the SPV (the majority being the two directors)

While neither HC Developments or the SPV are in administration, the  Security Trustee that holds the security on lenders behalf is ... this presumably will have some significance

Administrators will always be the choice of the board if they are placing the company into administration but they work for the company & creditors not the directors, and not investors, so it shouldnt be relevant.  I dont see any benefit to having BT involved as that will just bump up costs. IP have legal obligation to investigate why the company failed. Q & BT appear to charge the same rates so not a question of one being cheaper. Ultimately the FCA controls who the administrator is as they have to sign them off. Would have to go to court to change if the FCA agreed (cost?)

In terms of track record in P2P, Q are responsible for HQ & Wolves on Lendy so not great, BT did BN for ABlrate & Crowdstacker, mixed results & ironically replaced by Q as liquidators.

To be honest they all have the same remit, which is to recover funds for creditors and winding the platform down is always a by-product of that, they will all charge big fees, and will all talk a good positive game in the beginning so I suspect it matters little.

The admins are identified as such in the members list, sort by rank - I believe only 1 is currently active. star dust any thoughts on the highlighted bit of the OP? (edited crossed with VI)