|
|
Post by mrclondon on Nov 7, 2018 18:52:50 GMT
Whilst agreeing with all the prior comments expressing concern / outrage, it is plausible to envisage a situation in which Lendy have already concluded that what ever strategy is deployed going forwards will result in capital losses. In that situation for lenders who are tax payers it would generally be preferable for the money Lendy currently hold on account to be used (eventually) as part of the capital repayment rather than being paid out over the next 5 months as taxable interest (although thinking about it for most the loss relief would cancel it out ?? ).
Another random observation today is the 7th - why stop interest at the end of the 5th ? Its almost as if something happened on the 5th which changed the status of funds held on account.
All speculation, I'm afraid.
|
|
mary
Member of DD Central
Posts: 698 
Likes: 711
|
Post by mary on Nov 7, 2018 19:02:25 GMT
Whilst agreeing with all the prior comments expressing concern / outrage, it is plausible to envisage a situation in which Lendy have already concluded that what ever strategy is deployed going forwards will result in capital losses. In that situation for lenders who are tax payers it would generally be preferable for the money Lendy currently hold on account to be used (eventually) as part of the capital repayment rather than being paid out over the next 5 months as taxable interest (although thinking about it for most the loss relief would cancel it out ?? ). Disagree, if there are Capital losses, they can be offset against the interest earned, I’d rather have the cash now. Sadly, I no longer trust Lendy to have my best interests at heart. If they believe there is a case, then put it to a Lender vote.
|
|
invester
P2P Blogger
Posts: 612 
Likes: 618
|
Post by invester on Nov 7, 2018 19:06:27 GMT
Maybe so, but why assume these things? Nobody knows the tax status of all the lenders, not even Lendy themselves I guess. The thought of them doing this just for our collective benefit doesn't wash.
There are too many bad things about the loan. At least DFL005 had some a decent property market to fall back on. Is this really worth £33m?
|
|
Mr_N
Posts: 222
Likes: 225
|
Post by Mr_N on Nov 7, 2018 19:31:13 GMT
Very bad call. My last performing loan on the platform. Yep, this was my last performing loan although I had been anticipating this from the updates. Hopefully something can be done by another platform perhaps to take this one on? Same. There's little point even logging into LY anymore. 100% rate of "non performance" (defaulted) investments, no interest, no return of capital. A few are also about to pass the 365 day mark too.
|
|
invester
P2P Blogger
Posts: 612
Likes: 618
|
Post by invester on Nov 7, 2018 19:41:28 GMT
This type of loan was 'peak Lendy' - a colossal monster even by their standards.
There isn't going to be a platform that I can see that has the size to pull this off, even at a discount as they will then have to fund the rest of it. £10m indicates a hell of a lot of work to do and that could easily over-run.
There probably are other institutions who specialise in purchasing these type of distressed situations in return for high rates of interest, first charge and equity in the business but to me this seems to me unlike DFL005 to be more of a vanity project as opposed to a viable business.
|
|
Mr_N
Posts: 222
Likes: 225
|
Post by Mr_N on Nov 7, 2018 19:56:17 GMT
This type of loan was 'peak Lendy' - a colossal monster even by their standards. There isn't going to be a platform that I can see that has the size to pull this off, even at a discount as they will then have to fund the rest of it. £10m indicates a hell of a lot of work to do and that could easily over-run. There probably are other institutions who specialise in purchasing these type of distressed situations in return for high rates of interest, first charge and equity in the business but to me this seems to me unlike DFL005 to be more of a vanity project as opposed to a viable business. Anyone wishing to take 1st charge should also take on the existing debt in order to buy the charge from investors, not giving it away.No one should be in agreement with this 2nd charge path, it essentially creates a situation in which we're adding an extra £10m on to future recovery action. It's bad enough that this has been so overvalued in the first place. Adding another £10m on to future recoveries action and preventing LY from being able to take administration control is absurd. This is well beyond LY's remit as agent, if they go down this 2nd charge route on such a massive loan with so many investors I can see it being the straw. LY reports have shown problems with cash flow since August. If there are no other investors on the horizon the administrators should be called in immediately and provide a valuation report.
|
|
p2p2p
Member of DD Central
Posts: 123
Likes: 114
|
Post by p2p2p on Nov 7, 2018 20:04:59 GMT
Dear Lendy
I find it completely unacceptable that my interest in DFL019 (Pickering) is being considered being relegated to a second charge loan without my consent. I did not sign up for taking the full penalty if there is any shortfall in the loan. If new investment is needed to complete the project, it must be at least a joint first charge.
|
|
Carter
Member of DD Central
Posts: 250
Likes: 549
|
Post by Carter on Nov 7, 2018 20:34:45 GMT
Forgive me for being dim here, but;
Why isn't a full refinance being forced? Additional funds won't be raised by Lendy, loan term comes to an end in a few months, so.....refinance should have been formally pursued, has it been? If a full refinance has been pursued and the best result they got back was a £10M injection as a senior charge then there's a problem. A problem that won't be solved for us existing lenders by being demoted to a 2nd charge.
I have no confidence that the borrower could turn the additional funding into a complete project without ending up in the same situation as DFL005 whereby the business valuation prohibits them from attaining long term finance. If the project is viable with a further £10M investment then lets take control of that process, enforce the security and call in the experts to execute the project in our best interests.
Same approach with DFL005. Call in the experts and get it disposed of.
Stop letting this developer p!ss about for months looking at options that won't result in a full loan repayment. Ask him to refinance both loans and if he can't enforce the security.
|
|
lofty
Posts: 101
Likes: 104
|
Post by lofty on Nov 7, 2018 20:37:07 GMT
I've only seen this as a popup on the website and no email alert. I've a suspicion a large part of Lendy's customer base only login once a month to collect their interest run, and so will only find out in December - whoever writes next months newsletter is going to have to earn their pay!
|
|
|
|
Post by df on Nov 7, 2018 20:50:00 GMT
Well if this happens and lenders are relegated to a second charge with no capital returned, then that stinks in my book. I see this update a warning that this loan is very likely to be a 100% capital loss (and it's not the only one in Ly loan book).
|
|
Carter
Member of DD Central
Posts: 250
Likes: 549
|
Post by Carter on Nov 7, 2018 20:57:23 GMT
Well if this happens and lenders are relegated to a second charge with no capital returned, then that stinks in my book. I see this update a warning that this loan is very likely to be a 100% capital loss (and it's not the only one in Ly loan book). Have a word with yourself. That's just daft.
|
|
zccax77
Member of DD Central
Posts: 82
Likes: 76
|
Post by zccax77 on Nov 7, 2018 21:32:53 GMT
There is every possibility of losing 75% of value of investment on this after the second charge based on the business investment valuation of the site, look at dfl05 which has a LTV of ~50% and is struggling to get finance. This is a far inferior site. I see this update a warning that this loan is very likely to be a 100% capital loss (and it's not the only one in Ly loan book). Have a word with yourself. That's just daft. |
|
zccax77
Member of DD Central
Posts: 82
Likes: 76
|
Post by zccax77 on Nov 7, 2018 21:36:43 GMT
I struggle to see where 15m+ has been spent, either labour rates are astronomical there or money is being siphoned elsewhere There is every possibility of losing 75% of value of investment on this after the second charge based on the business investment valuation of the site, look at dfl05 which has a LTV of ~50% and is struggling to get finance. This is a far inferior site. Have a word with yourself. That's just daft. |
|
Carter
Member of DD Central
Posts: 250
Likes: 549
|
Post by Carter on Nov 7, 2018 21:39:33 GMT
There is every possibility of losing 75% of value of investment on this after the second charge based on the business investment valuation of the site, look at dfl05 which has a LTV of ~50% and is struggling to get finance. This is a far inferior site. Have a word with yourself. That's just daft. Well we're making progress, a few minutes ago it was a likely 100% loss, now there's only a possibility of losing 75%. Keep goings lads, we'll get there soon.
|
|
|
|
Post by Badly Drawn Stickman on Nov 7, 2018 21:40:22 GMT
There is every possibility of losing 75% of value of investment on this after the second charge based on the business investment valuation of the site, look at dfl05 which has a LTV of ~50% and is struggling to get finance. This is a far inferior site. Have a word with yourself. That's just daft. At an increase of 25% a post, we will be in profit in no time.
|
|
