dp
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Post by dp on Jul 17, 2018 14:51:28 GMT
@paul64 Paul70 I feel there is some critical information missing from the lender vote description of Option A. If a majority of lenders were to vote for Option A: 1) Is Lendy proposing no further recovery action against the borrower, the original valuer or any other party? 2) If the answer to 1 is “no action proposed”, will a claim therefore be made against the Providion Fund for the value of the capital loss? How can lenders reasonably be asked to vote without knowing this? From my understanding, option 1 does include further recovery action against the borrower/other parties. It does say "Return before further recovery action" so one assumes Lendy will take legal action to recover the lost capital. To me it seems to confirm "The first option involves a two-stage cash-settlement with the borrower"
Doesn't suggest 3 stage - with the third being recover the outstanding capital, interest and bonus.
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invester
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Post by invester on Jul 17, 2018 14:51:48 GMT
It was probably certain that the new valuation was going to be adverse.
Lendy have gone into a bit more detail with regard to the numbers, but I still feel the developer is trying it on. Effectively what this means is that our loan to them becomes interest free.
We should really be told exactly what the new valuation is in order to make an informed judgement.
I'm voting for no deal in the absence of further details.
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zlb
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Post by zlb on Jul 17, 2018 14:54:47 GMT
They make it look like there's no choice, even for those who invested relatively recently.
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dovap
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Post by dovap on Jul 17, 2018 14:55:32 GMT
lovely that we'll let them a £1 mill interest free on a 2nd charge but with a pg (altho oddly those seem uncertain in Opt 2)
what a crock
Are they really counting in the accrued interest to make 'recovery' misleadingly look less bad ?
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mh
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Post by mh on Jul 17, 2018 14:57:03 GMT
Steve, the email says of Option 1: "Return before further recovery action" which seems positive.
My question would be about the proposed new second charge loan. Second to what? It implies that the original is still active and enforceable. What then would be the point of a second charge loan?
We need more information before we can make an informed choice. Lendy should suspend the vote, so that people don't vote immediately, while not knowing the full picture.
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Post by brightspark on Jul 17, 2018 14:59:16 GMT
Totally agree. They are also setting a precedent for any other borrowers to play similar games. i shall vote for the first option which gives the quickest recovery and moves me nearer to exiting from Lendy. Lendy loan contracts cannot be relied upon at term and the whole lending process is thus a farce.
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invester
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Post by invester on Jul 17, 2018 15:01:18 GMT
The GDV must have been £22.6m as late as Feburary this year when the last IMS survey took place, so I wonder what has happened to this?
I can't see why there is not a build out option here, although I can see that Lendy will be fairly desperate to make option 1. Perhaps one of the Pauls will then come on the forum and boast that despite the size of the project, not a penny was lost by lenders as if it was some kind of success.
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dp
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Post by dp on Jul 17, 2018 15:02:29 GMT
It was probably certain that the new valuation was going to be adverse. Lendy have gone into a bit more detail with regard to the numbers, but I still feel the developer is trying it on. Effectively what this means is that our loan to them becomes interest free. We should really be told exactly what the new valuation is in order to make an informed judgement. I'm voting for no deal in the absence of further details. INTEREST FREE LOAN
It has been my gut reaction for a while, with all these haircuts and especially with overdue loans paying back the loan but no interest that the borrowers are taking us for a ride knowing they can play hard ball with Lendy and thus get a greatly reduced loan or in this case, more or less interest free loan.
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Jeepers
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Post by Jeepers on Jul 17, 2018 15:08:13 GMT
I'm confused. Why has Lendy agreed to a further £1m to settle the debt? Why not take £11m(presumably the refinance offer) now and £4m in 12 months?
If a finance company is willing to lend £11m, surely this only represents around 70% of it's value?
EDIT: Option 1 should be adjusted, take £11m now and leave the remaining loan amount as a second charge continuing to accrue interest. I don't see why we should unnecessarily hand over £3m to the borrower.
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orvilorvil
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Post by orvilorvil on Jul 17, 2018 15:11:25 GMT
I'm confused. Why has Lendy agreed to a further £1m to settle the debt? Why not take £11m(presumably the refinance offer) now and £4m in 12 months? If a finance company is willing to lend £11m, surely this only represents around 70% of it's value? Great point - doubt the Borrower will want to send all their profit back to us investors
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Yintara
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Post by Yintara on Jul 17, 2018 15:12:08 GMT
Before I vote I would like ALL of the details, not just the ones that Lendy want us to have, including a full balance sheet and proper figures to do some workings from, or else what's the point in investors voting?
For example, what happened to the rental income that was/still is being paid that was supposed to go to Lendy? Does Lendy have it? Does the borrower have it? What figures are we talking about? Have Lendy factored this into their calculations? If not, why not? What was the exact legal agreement regarding the rent?
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copacetic
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Post by copacetic on Jul 17, 2018 15:14:47 GMT
Interesting how the borrower managed to initially borrow £7.2m followed by further loans of £7.1m and is offering to pay back £11m + a pretty dubious £1m maybe next year. While I'm tempted to go for option 1 and cut my losses, as I understand it Lendy are effectively capping the borrower's personal guarantee to £1m (currently he's liable for the entire shortfall). We need to know more about the borrower's assets before we let him off the hook too easily I think. A quick tally of the positive net worths of his companies on companycheck.co.uk is £2.4m so this plus other assests that information isn't publically available on means he's getting off rather light IMO. I think there's scope here for sticking on some thumb screws and tightening a bit.
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orvilorvil
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Post by orvilorvil on Jul 17, 2018 15:16:36 GMT
Perhaps Lendy would like to comment on whether their fee will be paid to lenders for their continuing cock up of this loan?
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rocky1
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Post by rocky1 on Jul 17, 2018 15:16:44 GMT
lendy and these borrowers are certainly taking the p**s. is this the way all these other huge DFLs are going to play out as it seems making offers is now the norm.
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Balder
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Post by Balder on Jul 17, 2018 15:22:52 GMT
I am going to go reluctantly with option 1 only to get as much cash as quickly as possible out of Lendy never to return. I note they don't say how much of their fees they are dropping. Their transparency is appalling. Bye bye Lendy.
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