locutus
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Post by locutus on May 8, 2018 17:14:46 GMT
I decided to reject the offer and instead sell on the open market. As I see it, lenders have them over a barrel and the development can't proceed until we are paid all money owed. The LTV is so miniscule now with the amount of capital repaid and the development half complete and so the lender position is a strong one. Additionally, the borrower has multiple other projects on Lendy and is a successful company in its own right so I don't see why they shouldn't pay what is owed. This looks like Lendy just want to get it closed down and off the books whilst making lenders forego the interest they are rightfully owed. Agree with you but I can’t be bothered with the long drawn out affair of selling on the open market. What do you mean - it is effectively a guaranteed 12% (or 18% depending how rules are interpreted). Even if it takes years to resolve, we are highly likely to get all capital and interest paid when it finally unravels. The scrap value of the steelwork probably covers our debt and then some. Unless you need the capital in the short term, this is a great investment.
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hazellend
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Post by hazellend on May 8, 2018 17:16:47 GMT
Agree with you but I can’t be bothered with the long drawn out affair of selling on the open market. What do you mean - it is effectively a guaranteed 12% (or 18% depending how rules are interpreted). Even if it takes years to resolve, we are highly likely to get all capital and interest paid when it finally unravels. The scrap value of the steelwork probably covers our debt and then some. Unless you need the capital in the short term, this is a great investment. It probably is but I only have 1.8k left in it so it won’t make a huge difference
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invester
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Post by invester on May 8, 2018 17:17:30 GMT
I'm inclined to say no as well. Basically it also looks like taking the discount ends claims against anyone, so this doesn't bode well for other similar loans where the only viable buyer is the the original borrower.
This type of trick appears to be getting quite common now. What's the betting that the IMS surveyor in the Wolves case comes in with an 'adverse' valuation.
And what is the point of using 90-day valuations? It's clear that such a thing doesn't exist in these situations.
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locutus
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Post by locutus on May 8, 2018 17:17:38 GMT
Anyone who votes against this is just greedy. It's a 100% recovery! I'm not sure if you're joking but I would argue that anyone who votes for this shouldn't be investing in P2P full stop as they are not equipped to be dealing with these sorts of decisions if their analysis concludes the vote should be accepted. It is a terrible deal for lenders who hold all the cards.
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Yintara
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Post by Yintara on May 8, 2018 17:26:46 GMT
I received an invitation to vote on this, even though I sold out of this loan a long time ago. While it's nice to feel included, surely Lendy should only be asking the opinion of people actively holding loan parts?
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mh
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Post by mh on May 8, 2018 17:31:13 GMT
I have a 5 figure sum in this and voted a definite NO. I believe the security is good, and I'm happy to wait longer to get a return on my money rather than settle now and get no return on it.
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Post by munchydave on May 8, 2018 17:32:46 GMT
I'm inclined to say no as well. Basically it also looks like taking the discount ends claims against anyone, so this doesn't bode well for other similar loans where the only viable buyer is the the original borrower. This type of trick appears to be getting quite common now. What's the betting that the IMS surveyor in the Wolves case comes in with an 'adverse' valuation. And what is the point of using 90-day valuations? It's clear that such a thing doesn't exist in these situations. I have just voted NO. Looks like a big fiddle to me. Borrow money then offer to pay back capital with no interest and make it look like they are giving us a good deal. No let them sweat, we have the upper hand, and if it takes years we must not start down the slippy slope of accepting that paying back loans without interest is an option for borrowers.
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invester
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Post by invester on May 8, 2018 17:35:19 GMT
I reckon it's a bit of a sham of a vote anyway.
Looking at the state of the non-performers and the colossal DFL004, there must be desperation for good news. But a loan where no-one loses anything at this stage has more meaning to Lendy than to the average diversified investor.
Had there not been that many debacles in the past year I think it would have been better to just sell these and be done with it quick, the fact that Lendy have not estimated the proceeds (even a ballpark like the time taken to sell) suggests to me that they word it how they want it to go.
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69m
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Post by 69m on May 8, 2018 17:43:04 GMT
It's unfortunate that the 'professional opinion' can provide a likely timescale for disposal, but it can't provide any indication of what the sales proceeds might be.
Lendy is probably very keen for this debt to be gone as soon as possible. One less loan for its recoveries team to deal with.
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Post by GSV3MIaC on May 8, 2018 17:43:57 GMT
I received an invitation to vote on this, even though I sold out of this loan a long time ago. While it's nice to feel included, surely Lendy should only be asking the opinion of people actively holding loan parts? You got the email - if you follow it to the website you'll find out that the vote button doesn't work for you if you hold no parts. Not quite sure why the email went to everyone .. not exactly good publicity.
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ptr120
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Post by ptr120 on May 8, 2018 17:47:11 GMT
This is my first loan that I've been asked to vote on. Are there any implications of voting one way or the other, or not voting at all? I seem to recall that this is an advisory vote (a bit like the BREXIT vote) that Lendy are not obliged to follow.
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victors
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Post by victors on May 8, 2018 17:54:50 GMT
Is the developer here the same as DFL012? If so, is there any advantage for the future well-being of that loan in voting to accept this offer?
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macro
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Post by macro on May 8, 2018 18:01:45 GMT
This is my first loan that I've been asked to vote on. Are there any implications of voting one way or the other, or not voting at all? I seem to recall that this is an advisory vote (a bit like the BREXIT vote) that Lendy are not obliged to follow. I'm pleased to read that Lendy will publish results of the vote. I wonder whether they would go against an unambiguous expression of lender sentiment. FWIW, my stake here is negligible, but I'm voting 'No' as I think it sets a bad precedent to accept return of capital without interest - at least in this situation.
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mary
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Post by mary on May 8, 2018 18:05:58 GMT
This is my first loan that I've been asked to vote on. Are there any implications of voting one way or the other, or not voting at all? I seem to recall that this is an advisory vote (a bit like the BREXIT vote) that Lendy are not obliged to follow. I'm pleased to read that Lendy will publish results of the vote. I wonder whether they would go against an unambiguous expression of lender sentiment. FWIW, my stake here is negligible, but I'm voting 'No' as I think it sets a bad precedent to accept return of capital without interest - at least in this situation. Each situation is unique, I'm against this offer, but the same offer on DFL01/02 and I would bite their hand off!
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invester
P2P Blogger
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Post by invester on May 8, 2018 18:28:18 GMT
TBH the principle counts more than the money to me.
Most loans are to SPVs and covered with personal guarantees for a reason, that the SPV limits liability and personal guarantees are very hard to enforce.
I somehow don't think Lendy have the balls, or perhaps even liquidity should a build-out emerge as a good option.
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