DFL001 - Exeter Loan 1 - DEFAULT

Agreed, however the counter would new lenders continuing to join (now at 18k total), and someone took £200k of DFL12 yesterday, which I would assume is a new lender as most old lenders would likely be maxed on that one (or flipped it long ago).

Agree, I'm not celebrating, but I have to admit that I felt a wave of relief caressing my spine. I don't want Lendy to fail, I just want it to return back to organic growth and improving on managing risk instead of binging on stereoids turning its neck and shoulder into one.

Now looking at the empty half of the glass, does it now mean that the security could pay the monies in full but if the platform fails in the meantime, we are fwaked!

If it’s 2, better hold on to your hat for the repercussions on your MT and Coll strategies.

I doubt if this loan, on its own, is big enough to cause Ly to collapse. IMO the most likely outcomes are:

1) The loan is repaid in full but we are not told where the money came from, or whether or not there was a loss.

2) Despite the fact that the loan is on the old T&Cs Ly find a way for lenders to take a haircut.

Lendy’s knee jerk reaction by quickly appointing receivers over the Exeter projects instead of trading out of the default situation caused by the liquidation of the main contractor is compounding an unfortunate situation.
I, as the developer have my PG’s on the line and therefore it’s in my interest to maximize the returns achieved.

I feel I have to bring to investors notice again the pertinent facts of what’s now occurring.
I copy below my recent email to the receiver expressing my concern that the refunding arrangements I have put in place are being ignored. Because of that I feel I can no longer stand on the sidelines and say nothing. As per the forum rules I have redacted parts of the email to protect individuals.



Copy of email sent today to the receiver of the Exeter projects


My planning consultant Dxxx Exxx has reported to me regarding Regal Court. (Dxxx has been the planning consultant on both projects since day one)


It seems you met on site with the planning officer and DCC highways, which has now opened another potential bag of worms.
Had you involved me in those discussions I would have handled it in another way knowing as I do the history of the site and the earlier reports and agreements in place I had from LXXXX OXXXX’s predecessor.


It appears they maybe now insisting on an adopted road to access the back land, which is contrary to what was agreed previously and this, will entail the acquisition of additional land.
In view of Dxxx's report to me I urge you to accept the unconditional offer now from Xxxxxx, as I don’t think there is likely to be a viable economic alternative immediately available.

Xxxxx has advised me that unless he is involved in all negotiations and discussions involving access in future then no agreement will be entered into to allow access across his land.


Likewise the cash offer for the purchase of Kennaway (in its unfinished state, and without warrantees etc.)

I have not received a response and I will now go to the investors directly to lobby their opinion.
The refunding and offers I have managed to put in place will not be available for much longer.

I believe the investors stand to loose a substantially greater amount if the current offers on the table are not accepted - any shortfall could likely be filled by PI claims - and the amount of these claims could be challenged if a lessor net figure is eventually accepted because of these delays.

If the site is left over the winter then the part built houses will deteriorate rapidly and will be worth substantially less than the current bids.

Please come back to me by return with a definite decision as to whether the current offers on the table are to be accepted or not.


To be clear £6.7m total offer over the 2 projects is what’s on the table now, unconditional completion within 4 to 8 weeks. £7.7m is still on the table subject to reserved matters on the backland.
(These are strong offers and only made because I have agreed to work with the new developers to enable the part constructed site to be seamlessly taken over by them and includes access rights.)


Meaning £2m will be held back pending the agreement and costs of the RM. So that will give you £5.7m immediately with the balance of the £2m (less RM costs) in the future or £6.7m cash now.



You urgently need to allow access to allow the scaffolder’s to remove their scaffolding or reach a financial agreement with them to keep that on site. Xxxxxx are happy to inherit that contract.
The removal of the scaffolding at this stage will increase costs further and may cause Xxxxxxx to adjust their offer to compensate.

The scaffolding costs are; circa £6,000 owed and £2,000 per month to pay in rental costs. (There will be higher costs if a new scaffolding contract has to be entered into.)
Txxxx of XXX scaffolding can be contacted on xxxxxxxxx. He has asked for your email address which I have sent him.



Please get back to me asap.

Today I received this email from the agents for Xxxxxx.

Dear X,

I have just come off the phone to Xxx @ Xxxxxxx.

Since doing the Heads of Terms we have not had any feedback apart from the request to consider an unconditional offer (rather than a RM deal).

If anything substantive is to be sorted this year prior to Christmas and to avoid the “winterising” of the site Xxxxxxx really need to know this week to have any chance of sorting legals, doing due diligence and getting the deal closed.

Regards xxxxx

How are you calculating that £2.5m capital loss? Is the outstanding loan not £6m + accrued interest for 135 days?