invester
P2P Blogger
Posts: 612
Likes: 618
|
Post by invester on Jul 17, 2018 16:12:09 GMT
Even if you want the funds to get out of the platform I can't see how 1) is a good choice just yet. Don't know the current valuation as they have not shared it with us, but the land value and GDV recently suggests that there is some margin if a new party were to take this on.
The current site is a shambles it seems and needs reconfiguration but IMO it was always intended to be this way; Lendy ain't gonna be big enough to complete a build-out and nobody would fund them a loan to do so!
I fear the Liverpool Quay one going the same way, was looking real good at one point, now conveniently a couple of mill away from completion....
|
|
rs
Member of DD Central
Posts: 467
Likes: 254
|
Post by rs on Jul 17, 2018 16:19:41 GMT
I voted option 2. Not at all happy with option 1.
|
|
Kyrios
Member of DD Central
Posts: 90
Likes: 135
|
Post by Kyrios on Jul 17, 2018 16:27:21 GMT
Option 2 for me as well. No way those b...... will get away easily with that. As mentioned above, who can seriously believe the valuation dropped by 45% in a few months if it was true and fair...
|
|
rocky1
Member of DD Central
Posts: 1,132
Likes: 1,951
|
Post by rocky1 on Jul 17, 2018 16:31:46 GMT
option 2 for me as well.even though i have a large amount in this pushed on by the positive updates. i would rather this was sorted out properly.
|
|
daveb4
Member of DD Central
Posts: 220
Likes: 116
|
Post by daveb4 on Jul 17, 2018 17:06:22 GMT
Setting precedent worries me.
Who says the second valuation is correct? If the first one was wrong why can't the second one be to get a deal? Who is the new valuer?
Accept the offer and Lendy do not have to do any more work or spend any money chasing.
Fat chance of £1m in a year?
Might have to vote B on principle even though I want some cash back now.
|
|
nsinvestor
Member of DD Central
Posts: 105
Likes: 110
|
Post by nsinvestor on Jul 17, 2018 17:15:08 GMT
In summary, Lendy have made a packet in up front fees, the borrower has had a very low interest loan, and borrowers have lost varying amounts dependent upon when they invested, this from a loan that was presented as proceeding to plan up until a few months ago. Lendy are clearly spinning option 1 as a method of getting all "capital" returned and a chunk of profit on top, not how it works out for me, I see a loss even including interest received, but this seems to be Hobson's choice. So it seems that we are looking at about 75% or so return of capital "soon" and maybe the other 7% or so in 12 months, if the second charge or personal guarantee secures any further return which seems unlikely as the first charge didn't do very well. This is plain wrong, Ly are guilty of mismanaging this loan, they cannot be allowed to get off scot-free. Whilst I understand the desire of fellow investors to exit Ly asap, we should not be duped into voting for option 1 based on spurious and incomplete information. @lendy - I suggest you (i) postpone the vote, (ii) provide better, more complete data, and (iii) include option 3 which involves the platform foregoing its fees on this loan.
|
|
wilja
Posts: 20
Likes: 19
|
Post by wilja on Jul 17, 2018 17:15:17 GMT
Gone for option 2. Limited choice and don’t like the weakness of option 1. Clearly a lot of vested interest going on. Pretty disgraceful really.
|
|
TenKay
Member of DD Central
Posts: 144
Likes: 117
|
Post by TenKay on Jul 17, 2018 17:16:36 GMT
well with having money thrown down the drain with the COL business and now this farce im getting out of the P&P sham before i start owing money to them
wonder how their claim if investors never having lost out will pan out
|
|
nsinvestor
Member of DD Central
Posts: 105
Likes: 110
|
Post by nsinvestor on Jul 17, 2018 17:16:43 GMT
Some back of the envelope maths:
Loan £14 million
Lendy fees : 6% p.a
Term : 1.75 years
Total fees : £1.47 million
That's a fair bit of change, assuming Lendy didn't discount their fees to win the business.
|
|
nsinvestor
Member of DD Central
Posts: 105
Likes: 110
|
Post by nsinvestor on Jul 17, 2018 17:18:57 GMT
What we don't know is what the borrower actually offered Lendy - all we know are the £11/£1 being proposed.
Borrower may have offered much less and Lendy already throwing into the pot to make it more palatable to voters - I suspect there will be quite a few takers at 77%+ now when they same people may well have rejected a 60%+
|
|
nsinvestor
Member of DD Central
Posts: 105
Likes: 110
|
Post by nsinvestor on Jul 17, 2018 17:21:53 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.
|
|
Jeepers
Member of DD Central
Posts: 818
Likes: 721
|
Post by Jeepers on Jul 17, 2018 17:24:25 GMT
I've gone for the smash and grab option.
All they've told us with regards to the valuation, is that it's less than the loan amount. Factor in the additional risk of waiting plus the opportunity cost, option 1 is far better than option 2.
That said, I'm still not satisfied Lendy has negotiated a deal as good as they could have done. They've taken their fees And interest margin as well as just being able to maintain the,no capital lost' tag line once interest absorbs the loss.
As per, as long as Lendy is ok, why bother fighting for the lenders sake.
|
|
nsinvestor
Member of DD Central
Posts: 105
Likes: 110
|
Post by nsinvestor on Jul 17, 2018 17:24:50 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. In the earlier updates it talks about the borrower making a final settlement offer. In the voting email it infers an immediate and certain resolution and talks about a 'cash settlement'. I took 'further recovery action' to refer to the £1m in one years time. I'm sure this would be in full & final settlement - otherwise it's simply a partial repayment
|
|
|
Post by d_saver on Jul 17, 2018 17:27:54 GMT
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. It simply states that, but there is absolutely no commitment or detail on what further recovery they might do, if anything at all (I've asked them, so we'll see if they comment further). Seems like it's just language to get you to vote for Lendy's preferred option. IMO, this is a pretty poor level of detail with Lendy not sharing the full story. How are investors supposed to make an informed decision?
|
|
xpubman1
Member of DD Central
Posts: 62
Likes: 40
|
Post by xpubman1 on Jul 17, 2018 17:36:47 GMT
When ever I get an offer like this in all my business financing, I snap their hands off, then I look at how much interest already received, and how I get to put the money back to work, then is the time to start calculating any loss, with all considerations such as how much will the money earn when back to work in comparison with what it was losing with the existing borrower....the loss will be less than you think
|
|