C****s Quarry (FS)

29/10/21. Sold with funds received & breakdown said to be in due course.

Why is it taking so long ?

With all recovered loan monies still caught up in this Quistclose fiasco, even if we know the amount recovered per individual loan (as in this case), we still will not know what percentage of the total loan we will receive back until Quistclose is resolved - and that's assuming whoever it is bringing the claim does not win their case and have a claim somehow on this or other loans.  

Quistclose matters not withstanding, I believe another part of the issue (major or minor, I don't know - but I suspect the former) is that the Administrators do not know how to produce the breakdown.  From last November's report:
For the most part, it used to a relatively straight-forward 'formula':  amount realised less 3rd party costs, less FS' 5%, less CG's 3% = balance to be returned to the lenders.

That 5% went to FS and effectively became part of their 'operational pot'.  The administrators, CG&Co, were relying on that 'pot' to cover off any and all additional costs to the administration, eg: their time and other costs associated with the day-to-day running of a company* in administration, as well their direct time (and any other costs) in administering loans where there were no realisations and so their time could not be covered by imposing their 3% fee (more accurately, 2.5%+VAT).

I suspect - but don't know - that this could have implication on pay-outs to lenders already made. So if there is any money in the 'pot' that may be significantly depleted in order to cover the repayment of the 5% deducted; or whatever needs to be repaid as a result of negotiations with the CC.

I also suspect none of the CC are able to comment due to NDA's (but tagging Mucho P2P on the off chance) so, if we don't see any repayments made to lenders which include a breakdown, I suspect lenders will need to wait until around May for the next Administrators report.




*Talking of which, I note the Company Accounts are overdue.  I wonder if that's also related to the position FundingSecure finds itself in with regard to be 'a going concern', or similar. It might have been that it was considered that the 5% levy on a guesstimated portion of the loan book that was returned would be sufficient to cover the forecasted costs of 'gracefully' running down that loan book and fully winding down FundingSecure as a legal entity. Now that 5% has been removed, maybe that has become questionable.  Dunno - absolute speculation on my part.

£871,357.78  left after the sale and expenses paid, C G might syphon some more out. will we get our investment back ? 


Please note that the above calculation is being provided for illustrative purposes only and is subject to change. The Joint Administrators and the Creditors’ Committee are currently finalising a sum to be deducted from all loans in order to fund the ongoing expenses of the Administration for the benefit of all Investors and Creditors which will be applied to the above calculation. The final sum available to Investors will be confirmed in due course, once both the position is resolved with the Creditors’ Committee and funds are able to be released back to Investors.