Steerpike
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Post by Steerpike on Jul 17, 2018 17:37:04 GMT
Defaulting the loan (option 2) should lead eventually to a crystallised loss that can be claimed against tax and so may be a better choice for investors even in the event that the return is less than that proposed in option 1 cash-settlement. If the borrower and a.n.other consider that there is value in the development after handing over the £11m, then it seems fair that existing investors should have at least a share of that remaining value.
Currently, with the paucity of information supplied, I am inclined to vote for option 2.
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Carter
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Post by Carter on Jul 17, 2018 17:42:28 GMT
I'm wondering if option 2 will result in a subsequent better offer. Hmm.
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invester
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Post by invester on Jul 17, 2018 17:48:16 GMT
I'm sure it will - it is a game of resolve. The borrower faces having the site repossessed and gaining no profit out of it, not in his interest to allow it to go to third parties. Because of sums involved, I'm sure Lendy would love to just get it out of the way and then when faced with criticism just say 'you voted for it, don't blame us!'
In the Exeter loans is it not right that the original borrower let the loans go bad, let Lendy stew for a bit, came back with a lowball offer of £6m which was rejected and Lendy got the receivers in? That led to a raised offer (the phantom June 31st refinance)
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KoR_Wraith
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Post by KoR_Wraith on Jul 17, 2018 17:49:04 GMT
Lendy are not being transparent. We have been entirely misled/deceived by the IMS updates and valuations. I regularly invested into this loan throughout the tradable period on the back of these updates so my return is not nearly as neutral as Lendy's best case scenario.
The borrower should not fairly be allowed to so drastically limit their ongoing liability as is suggested by option 1. They profit from the development whilst us original backers lose out? That said, I've opted for option 1 and will never again fund a Lendy backed DFL.
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Post by GSV3MIaC on Jul 17, 2018 17:54:51 GMT
I shall vote 2, 'pour encourager les autres', if for no other reason.
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neal
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Post by neal on Jul 17, 2018 18:16:52 GMT
I voted option one, the sooner I get my cash out of Lendy the better.
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michaelc
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Post by michaelc on Jul 17, 2018 18:18:59 GMT
Lendy are not being transparent. We have been entirely misled/deceived by the IMS updates and valuations. I regularly invested into this loan throughout the tradable period on the back of these updates... I did too but also I (naively) trusted some of the folk around the start of this thread who seemed to be investors and gave me a positive feeling about it. Of course I have no recourse and even if I did wouldn't dream of pursuing it but it does bug me a little that most of those folk seem to not want to post here anymore - probably got out a long time ago. I'll be going for option two partly because its clearly the one Lendy don't want us to vote for and partly because this is apparently going to leave the borrower laughing. I also agree with someone who said it might encourage a better offer.
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TenKay
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Post by TenKay on Jul 17, 2018 18:36:08 GMT
I voted option one, the sooner I get my cash out of Lendy the better. im inclined to agree, i no longer trust Lendy to have MY best interest to heart and want my money out asap
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locutus
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Post by locutus on Jul 17, 2018 18:58:26 GMT
I did too but also I (naively) trusted some of the folk around the start of this thread who seemed to be investors and gave me a positive feeling about it. Of course I have no recourse and even if I did wouldn't dream of pursuing it but it does bug me a little that most of those folk seem to not want to post here anymore - probably got out a long time ago. If I recall correctly, you were the trigger for some of those people getting banned and no longer posting here. You have a post on Frank where this was pointed out to you.
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69m
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Post by 69m on Jul 17, 2018 19:03:33 GMT
I'll delay voting until I receive answers to some questions I've sent Lendy. The slight flaw in that plan is the vote closes in three days, but Lendy will take up to five working days to respond to email support queries...
One of the many issues I have with Option 1 is the £1m deferred instalment (which, as others have already said, should really be the full shortfall amount). Whatever the figure is, my concern is that it simply won't be paid in a year's time and we'll be palmed off with yet more excuses.
Regarding the £22,650,000 valuation, the letter sent from the RICS valuer to Lendy on 12 July 2017 includes the following: "Please note, this advice is not intended to be in accordance with the RICS Valuation Professional Standards Global and UK Edition (Red Book)." So, just a rough guess then?
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Jeepers
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Post by Jeepers on Jul 17, 2018 19:08:44 GMT
My concern is that if we as investors put too much pressure on Lendy to accept whatever is on the table, the borrower will use that to his advantage.
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ilmoro
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'Wondering which of the bu***rs to blame, and watching for pigs on the wing.' - Pink Floyd
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Post by ilmoro on Jul 17, 2018 19:10:41 GMT
michaelc The beginning of this thread provides facts & logistics of rollover. No evidence of anyone really pushing loan. Of course, this loan was launched in 2016 when everything in savingstream garden was rosy and not a roosting chicken in site.(sic) For the record im still in it and will probably go for option 1 as regaining capital to redeploy is more important than 12 months of making a stand. Unfortunately our local correspondent is no longer with us so any banana skins along the way will be unflagged.
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invester
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Post by invester on Jul 17, 2018 19:11:37 GMT
That seems to me to be exactly what Lendy want.
If 100% vote for option 1 means the deal gets closed.
I don't feel investor interest and Lendy's interests are in alignment.
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sarahcount
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Post by sarahcount on Jul 17, 2018 19:21:41 GMT
What's really got my goat is the Lendy worked example that assumes that we all invested only in tranche 1 and none of the subsequent ones.
This from the platform that keeps chastising us for failing to continue to plough money into other DFLs.
I'll be voting for Option 2. Yes I want to get my money out but I object to being taken for a fool and invited to accept such a derisory offer.
If the site still has potential and the borrower has other significant assets I don't see why we should just roll over here.
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invester
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Post by invester on Jul 17, 2018 19:26:50 GMT
Exactly.
I feel Lendy know exactly what they are up to and taking advantage of the situation. They won't put up detailed numbers because it won't be needed.
People are voting number 1 not because they thing it's the best course of action in this individual loan, but because they just want shot of the platform without wanting to do any further analysis.
They might as well get rid of all their duds in the same way, and start up again under a different name. They are a busted flush as far as I am concerned.
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