picnicman
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Post by picnicman on Sept 1, 2018 10:14:31 GMT
And who's going to fund this build out? Presumably finance to complete would be raised against the development (on a 1st charge basis, relegating the existing LY debt to 2nd charge). Likely from a commercial lender rather than via the LY platform, given the need for certainty of funds. Clearly this is a much bigger scheme, but two defaults on MT are being built out using developers/funding sourced by the administrator. So precedents for a similar workable methodology here. I am not in this loan and clearly it is not that simple, but for what it is worth, I am just saying that this is not untried elsewhere and so there may be some hope for those currently trapped? Cheers P
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SteveT
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Post by SteveT on Sept 1, 2018 10:52:48 GMT
Administrator pays their chosen contractor using 3rd party finance, then sells completed development for the benefit of the secured creditors (Lendy), once the additional finance is repaid. Only makes sense if there is confidence in the GDV and the build out costs.
The debt owed by the SPV to Lendy would be continuing to accrue interest in the meantime, though whether there’d be enough to pay it all seems unlikely to me.
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dp
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Post by dp on Sept 3, 2018 14:07:10 GMT
Has anyone looked at the Vote results.....Option 1 as being the clear winner but Lendy appear to ignore the result and are proceeding with Option 2.
Option 1- 45.62% Option 2 - 17.79 %
Total Votes = 63.41%
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Post by douganole on Sept 3, 2018 15:20:52 GMT
Yes but that is by the value of the investments - not "one man, one vote". Just because someone has £5,000 invested (gambled!) it doesn't make him/her more important in the voting process than someone who has £50 invested (gambled!).
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hazellend
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Post by hazellend on Sept 3, 2018 15:29:45 GMT
Yes but that is by the value of the investments - not "one man, one vote". Just because someone has £5,000 invested (gambled!) it doesn't make him/her more important in the voting process than someone who has £50 invested (gambled!). I think it should be though.
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Jeepers
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Post by Jeepers on Sept 3, 2018 15:31:41 GMT
Yes but that is by the value of the investments - not "one man, one vote". Just because someone has £5,000 invested (gambled!) it doesn't make him/her more important in the voting process than someone who has £50 invested (gambled!). Yes, it does. It makes them 100x more important. That's like saying it's unfair that someone who bought a load of raffle tickets has a greater chance of winning.
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Post by loftankerman on Sept 3, 2018 15:44:55 GMT
Irrespective of the size of anyone's investment in any particular disaster, Lendy reserve the right to disregard the outcome of any vote and please themselves about what they do. In that respect, no one's vote is worth anything. However if they choose to do what an individual voted for, that person might want to believe Lendy listened to them based on some attribute they believe they brought to the party. Me ? Well, I'm more inclined to go with the outcome being divined by random chance as I doubt that considered rational thought comes into much at Lendy Towers.
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arby
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Post by arby on Sept 3, 2018 15:51:10 GMT
Yes but that is by the value of the investments - not "one man, one vote". Just because someone has £5,000 invested (gambled!) it doesn't make him/her more important in the voting process than someone who has £50 invested (gambled!). You're right that the results of both ways of splitting the data can be useful, but of course the larger investors should have more say; having one share in a company doesn't automatically give you equal power to the majority shareholder.
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Post by df on Sept 3, 2018 17:02:39 GMT
So, today's the deadline. What's the score then Lendy Support ? Did the borrower provide a revised offer or are we going for a build out? Today is the deadline for the borrower to provide suitable settlement proposals, not for Lendy's feedback to us I suspect it will be a long wait for receiving some of our capital back
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Post by charliebrown on Sept 3, 2018 20:56:24 GMT
I think this loan and the way it was handled on the run up to the default, the farsical vote and the way it’s been handled post default is the straw that broke the camel’s back for LY. If this loan had repaid as promised by LY then confidence in the platform would have been given a boost. If LY do go under then we can look back and say LY’s mismanagement of this loan was the beginning of the end.
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Post by p2plender on Sept 3, 2018 22:47:17 GMT
From the delays in the project, the misleading updates on progress to Lendy deciding to change the outcome of the vote, yes if ever there was an excuse for new investors not to go near this platform, then this was the loan!
A £14 million disaster.
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averageguy
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Post by averageguy on Sept 25, 2018 19:01:03 GMT
So last update gave the borrower until September 3rd...or an administrator was to be appointed...cant wait for next Mondays update...sigh
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Post by thedon on Sept 25, 2018 20:56:30 GMT
I'm looking forward to Mondays update too.
If the borrower is not prepared to sump up the money then build out seems like a good option.
It will be good to see this project moving.
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Post by p2plender on Oct 1, 2018 12:49:41 GMT
There is an update but it may as well be an update.
Another Lendy disaster on our hands here.
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invester
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Post by invester on Oct 1, 2018 13:45:56 GMT
Personally I think the build out is a bit of a bluff here. It seems expensive and long-winded.
The block doesn't seem to know what it is. Is it apartments for professionals, students, serviced apartments for short-lets, or council housing? It seems to have marketed themselves at all of these groups, all of which have differing needs. I can't seem to think of a set-up like it, and for good reason, it doesn't work.
For the security to be disposed of I think some of the apartments would have to be reconfigured, and that's on top of the outstanding works that needs to be done.
My own prediction is the original developer will end up getting it for a cut-down price. There doesn't seem to be much of a shortage of flats here, and given you could pick up a city centre 2-bed for c£90k or even a house for £100k, the price for these would have to be much less, as going on the few pictures the flats look smaller and in a worse location. It would be more lucrative to rent these out but then Lendy have the risk of paying to build it out and there being no takers for it, at which point they would have to cut a deal anyway.
It shouldn't work like this, but the other bad loans cross-contaminate others. Hypothetically speaking a deal for 80% return now would be much more tempting now than the summer given what other problems have arose since then.
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