james21
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Post by james21 on May 25, 2019 11:50:07 GMT
I think the FCA were patiently waiting for this large sum of money to materialise, before pouncing on the administration. They will use this money as initial working capital for the administration until more money materialises from other liquidations. I am slightly glad that more experienced people will now effect the wind-down of this mess, albeit at some expense. Far better than the <redacted> running the wind-down. The FCA must of got fed up with LB BS. This was my thought exactly when I came to wondering why the administration was yesterday and not some other day. FCA would have access to the bank accounts and know whats in there and they are probably low
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mary
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Post by mary on May 25, 2019 12:00:56 GMT
Not really. The FCA restrictions Lendy were operating under should have protected it. But initially it will fund the costs of administration, so we won’t see anything any time soon. I am totally not understanding - we were secured creditors and these proceeds were for this particular loan. Did that stop when the money hit Lendys bank account. How can the FCA use it for anything other than to repay those creditors? Our interest has not gone away, it’s just been relegated behind the costs of the Administrators, unfortunately. Obviously the costs of the Administration will be spread across all recoveries, it’s just that they could decide to wait until all costs are known before making any distribution. Think years, not months.
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jomantha
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Post by jomantha on May 25, 2019 14:45:39 GMT
Thanks I sort of get it - but not.
Is there going to be a pot and all Lendy "investors" will get paid per £1 as opposed to depending on which loans they are pain into.
What a shambles. I got most of our money out but still have enough stuck in there this will bite.
Over half of which is in this.
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Post by brightspark on May 25, 2019 15:07:09 GMT
I am totally not understanding - we were secured creditors and these proceeds were for this particular loan. Did that stop when the money hit Lendys bank account. How can the FCA use it for anything other than to repay those creditors? Our interest has not gone away, it’s just been relegated behind the costs of the Administrators, unfortunately. Obviously the costs of the Administration will be spread across all recoveries, it’s just that they could decide to wait until all costs are known before making any distribution. Think years, not months. I do not think you are correct. Lendy has 2 streams of incoming money one of which goes into ring-fenced segregated accounts as required by the FCA. The distribution of these ring-fenced funds should not have to be delayed by the entire Administration process. We will see what happens over the fairly near future but ring-fenced money belongs to investors and is not there to cover the out of pocket expenses of anyone. Otherwise it is not ring-fenced!
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Monetus
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Post by Monetus on May 25, 2019 15:20:00 GMT
Thanks I sort of get it - but not. Is there going to be a pot and all Lendy "investors" will get paid per £1 as opposed to depending on which loans they are pain into. What a shambles. I got most of our money out but still have enough stuck in there this will bite. used Over half of which is in this. I am somewhat speculating here but in theory (and if my experience with Collateral is anything to go by) the funds recovered from any individual loan on the new terms will be considered a "trust asset" and belong to the investors of that loan in question. If the money is all where it's supposed to be in the Lendy client account (otherwise known as Saving Stream Security Holding Limited) which should be a separate and ring-fenced asset, this should also apply to cash held on account which would also be considered a "trust" asset. Deductions will almost certainly be made for the cost of the administration if there isn't enough in the Lendy office account to cover them (which IMO is almost a certainty) and this could be applied in the form of "general" fees and "trust asset" fees for any time spent on an individual loan. Any funds that Lendy have deducted from recoveries already as their fees, commission or interest would be separate from client funds as they would go into the main Lendy company account. These funds (if there are any) would most likely be used to fund the cost of the administration in the first instance. In the case of HQ - some funds were obviously just recovered from the sale of the property and in theory they would certainly belong to the investors in that loan as a trust asset. Whether they can/will be immediately distributed is too early to say at this stage as it depends on a multitude of factors (potential fees, how solvent Lendy are, any potential legal issues or claims etc) but I would say it's extremely unlikely that this will be resolved quickly to be honest. It's likely that your overall level of recovery from Lendy will vary wildly depending on the individual loans that you are invested in. It's largely going to come down to the quality of the individual security held and any prospects for further recovery from PGs or PI claims (if there is potential for them and it would be cost effective to pursue them).
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Post by brightspark on May 26, 2019 8:09:34 GMT
The other issue concerning is what exactly were the terms of the last ditch agreement between Lendy and the borrower(s) for this loan asset sale. The Lendy announcement indicated that a compromise had been reached. Has it been signed away for substantially less than its worth and if so who would be the beneficiaries?
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Mucho P2P
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Post by Mucho P2P on May 26, 2019 8:43:52 GMT
Our interest has not gone away, it’s just been relegated behind the costs of the Administrators, unfortunately. Obviously the costs of the Administration will be spread across all recoveries, it’s just that they could decide to wait until all costs are known before making any distribution. Think years, not months. I do not think you are correct. Lendy has 2 streams of incoming money one of which goes into ring-fenced segregated accounts as required by the FCA. The distribution of these ring-fenced funds should not have to be delayed by the entire Administration process. We will see what happens over the fairly near future but ring-fenced money belongs to investors and is not there to cover the out of pocket expenses of anyone. Otherwise it is not ring-fenced! The law on ring-fenced accounts, whilst simple on the surface, is more complex than first appears. For example, if non ring-fenced monies were placed into that ring fenced account, (not by accident), then the ring fencing ceases, as the money has been co-mingled and effectively sullied. This is one of the reasons that ring-fenced accounts are held in separate banks and not just separate accounts at the same bank, as a measure to prevent "contamination".
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Mucho P2P
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Post by Mucho P2P on May 26, 2019 8:53:19 GMT
The other issue concerning is what exactly were the terms of the last ditch agreement between Lendy and the borrower(s) for this loan asset sale. The Lendy announcement indicated that a compromise had been reached. Has it been signed away for substantially less than its worth and if so who would be the beneficiaries? Now it is clear as to why it was signed away for less than its worth. As its becoming clearer now what happened in the run up to the Administrators being appointed, Liam would have had no inclination to fight for its true value, all he would have wanted was cash, and as fast as possible considering the circumstances! So the fastest deal was most likely accepted in preference to the most capital returned deal. Sadly, nothing new there for a Liam deal.
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jomantha
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Post by jomantha on May 26, 2019 9:02:34 GMT
so basically the FCA can take our money and use it to pay the administrators of the shut down.
The shroud of secrecy indicates something terrible has happened and I hope the police get involved - not that I think we will see any more money but if there has been then it needs addressing.
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Post by masquedefer on May 26, 2019 9:47:54 GMT
so basically the FCA can take our money and use it to pay the administrators of the shut down. The shroud of secrecy indicates something terrible has happened and I hope the police get involved - not that I think we will see any more money but if there has been then it needs addressing. I have started a new thread on this very point. See Lendy administrator fees versus loan recovery fees
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Post by mot on May 27, 2019 15:06:10 GMT
Hi fellow investors in the Tower.
due to the fact that we were about to be paid some of our capital back, does anyone have a view on what action the administration team may take? Surely they should be able to action the same return of funds ASAP?
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Post by mot on May 27, 2019 15:37:41 GMT
HQI have paid lendy back albeit not to the value of the loan. The cash sat with solicitors until cleared with FCA so it’s “THERE” wherever that is !
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Post by brightspark on May 27, 2019 16:15:02 GMT
Hi fellow investors in the Tower. due to the fact that we were about to be paid some of our capital back, does anyone have a view on what action the administration team may take? Surely they should be able to action the same return of funds ASAP? If you have not done so i suggest you read the thread entitled:- DFL012 / DFL036 - H********** Quay, Liverpool DEFAULT
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averageguy
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Post by averageguy on May 27, 2019 18:14:58 GMT
Hi fellow investors in the Tower. due to the fact that we were about to be paid some of our capital back, does anyone have a view on what action the administration team may take? Surely they should be able to action the same return of funds ASAP? If you have not done so i suggest you read the thread entitled:- DFL012 / DFL036 - H********** Quay, Liverpool DEFAULT Ye its 50 pages long ..bit hard to miss ..like the Tower
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james21
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Post by james21 on May 27, 2019 18:21:54 GMT
tower? forget it, those days hiding the names have long gone, get real!
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