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Post by Please turn me over on Jun 23, 2018 15:26:45 GMT
It never struck me as sensible to expect that UN1 holders would agree to relenguish their priorty.
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gareot
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Post by gareot on Jun 23, 2018 16:57:11 GMT
Maybe Lendy should have considered lowering their fees for the 2nd charge ( assuming they didn't ), & given a better interest rate to investors .After all it's in everybody's interest for the project to be completed asap. Everybody that is except Lendy of course. I think it’s in Lendy’s interest to have successful, large developments. This was pulled because the borrower could not persuade UN1 holders to give priority to Ly’s 2C leaving the charge unviable against the platform max of 70% ltgdv so this is now being sought from an alternative lender. I stand corrected. Didn't see latest update & assumed it was because of the slow uptake although I still think a higher interest rate & even a 3rd charge would have moved things along. It's a shame in my eyes because it's such a superb looking building near to completion. I wonder what rate the alternative lender will want.
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awk
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Post by awk on Jun 27, 2018 15:37:52 GMT
Further to the platform update on Friday 22nd June 2018 please see an important update on DFL012.
Lendy has now received further information from the borrower on their alternative funding source for the remaining build costs of the project. However, Lendy believes the borrower’s proposal would have resulted in an unacceptable change to the risk profile of the loan, and would have resulted in a unsatisfactory outcome for our investors.
Therefore, in line with our regulatory requirements, Lendy has taken the decision to suspend trading of the loan on the secondary market. It has also appointed an administrator over the borrower company.
Please be assured that this decision has not been taken lightly.
The decision follows a lengthy legal process, during which Lendy has been working on a number of options with the borrower to help them continue with the project. Regrettably, Lendy concluded that none were viable for Lendy’s investors.
In light of the latest property valuation, and forecast costs to complete the project, we are hopeful that, following the conclusion of the administrator’s appointment, and disposal of the security property, we will be able to repay all outstanding capital to investors.
We will provide a further update as soon as we have new information.
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Monetus
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Post by Monetus on Jun 27, 2018 15:37:54 GMT
Now suspended and administrators appointed.... yet another big DFL on Lendy gone sideways.
And to think this one looked like one of the more solid projects on the platform!
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SteveT
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Post by SteveT on Jun 27, 2018 15:42:38 GMT
Good. This has been looking likely for a while now (raising a 2nd charge loan always struck me as a stretch). Better to move positively and quickly to take control.
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hazellend
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Post by hazellend on Jun 27, 2018 15:45:31 GMT
Hopefully it’s as near completion as it seems.
Beautiful property, it would be cool to live there
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sl75
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Post by sl75 on Jun 27, 2018 16:03:20 GMT
Lendy has now received further information from the borrower on their alternative funding source for the remaining build costs of the project. However, Lendy believes the borrower’s proposal would have resulted in an unacceptable change to the risk profile of the loan, and would have resulted in a unsatisfactory outcome for our investors. I'm not sure I understand what that means given we have a first charge. Does this mean the borrower is proposing work that would cause the building to lose value compared to the value it has today, or am I missing some other nuance?
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Post by Please turn me over on Jun 27, 2018 16:06:38 GMT
Hopefully it’s as near completion as it seems. Beautiful property, it would be cool to live thereIt's probably anything BUT cool inside on a day like this. 
The webcam is still up, but aside from the odd hi-viz jacket here and there, outward progress has seemingly been non-existant recently.
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SteveT
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Post by SteveT on Jun 27, 2018 16:07:23 GMT
My guess is they wanted to start completing on sales to raise further funds and expected Lendy to start releasing security.
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mary
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Post by mary on Jun 27, 2018 16:21:32 GMT
My guess is they wanted to start completing on sales to raise further funds and expected Lendy to start releasing security. You are likely correct, in which case I think Lendy's action is the best course for investors, as it forces their hand, and most probably (hopefully) ensures that this is not a long drawn out affair. As this is one of my largest single exposures, I'm crossing everything for a good outcome.
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SteveT
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Post by SteveT on Jun 27, 2018 16:31:59 GMT
You are likely correct, in which case I think Lendy's action is the best course for investors, as it forces their hand, and most probably (hopefully) ensures that this is not a long drawn out affair.About 4 months would be ideal, to maximise the bonus interest 
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webwizard
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Post by webwizard on Jun 27, 2018 16:52:53 GMT
So trading suspended and administrator appointed....
Same old story, everything is fine...slight blip....whoops !
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webwizard
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Post by webwizard on Jun 27, 2018 16:53:49 GMT
Update:
Lendy has now received further information from the borrower on their alternative funding source for the remaining build costs of the project. However, Lendy believes the borrower’s proposal would have resulted in an unacceptable change to the risk profile of the loan, and would have resulted in a unsatisfactory outcome for our investors.
Therefore, in line with our regulatory requirements, Lendy has taken the decision to suspend trading of the loan on the secondary market. It has also appointed an administrator over the borrower company.
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ilmoro
Member of DD Central
'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 Jun 27, 2018 17:02:33 GMT
You are likely correct, in which case I think Lendy's action is the best course for investors, as it forces their hand, and most probably (hopefully) ensures that this is not a long drawn out affair.About 4 months would be ideal, to maximise the bonus interest Now being displayed correctly to 2dp in case anyone hadn't noticed
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SteveT
Member of DD Central
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Post by SteveT on Jun 27, 2018 17:08:02 GMT
So trading suspended and administrator appointed.... Same old story, everything is fine...slight blip....whoops ! Slight blip? The build is well over budget, already 6 months late and still not even weather-tight, let alone finished. If only this developer had the first clue about sticking to budgets and build schedules, they wouldn't keep losing control of their assets... (see PBL120)
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