Monetus
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Post by Monetus on Nov 5, 2019 10:32:40 GMT
Quiet innit.
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Monetus
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Post by Monetus on Nov 5, 2019 8:45:03 GMT
Do we know when it will be issued? I imagine lots of angry emails heading their way. That information was passed to me by Anoop another Commitee member who had spoken with them so I don't know myself.... but I will try and find out.
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Monetus
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Post by Monetus on Nov 4, 2019 13:22:35 GMT
Update: Interim distributions for Loans: DFL012 / 032 / 034 / 037 have been processed a short while ago. Advisory update will follow tomorrow. Withdrawals functionality will be reinstated from tomorrow onwards subject to individual Investors’s AML qualification.
Did the advisory update ever appear?
Nope.
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Monetus
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Post by Monetus on Nov 4, 2019 2:55:15 GMT
Yes I believe the claim from Lendy Group Ltd is for 800k. I am not convinced that the two employee claims will amount to anything but who knows.
The overall upshot of this is that Lendy Ltd would be awash with a sizeable pot of money so any drawings taken by administrators and other professionals would need to be very closely monitored.
As noted any shortfall in Model 1 loans (as is likely) would be a claim from this pot along with various other claimants from Model 2 loans who may have suffered a financial loss due to negligence or breach of trust/agency on behalf of Lendy Ltd on their individual loans (which may be a sizeable queue) so this wouldn’t necessarily be limited to claimaints affected by the waterfall. It would also include those due remediation payments from Lendy's part-finished mis-selling remediation exercise for example.
The other issue of course is that even if there are funds left over to be distributed to creditors it may be several years before the loan book is wound down sufficiently enough to be able to do so meaning there could be a very long wait to receive any further payments.
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Monetus
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Post by Monetus on Nov 2, 2019 19:19:03 GMT
Yes, I suspect the issue with this, and many other very late loans is that the last LY T&cs, which they tried to thrust upon us, say Ly get all their money before lenders get any. I doubt the administrators want to do that before they check as to who is in the right.. Paying it out may be much easier than clawing it back. No, I didn't accept those T&cs either.. did you? Could it be that, if the Waterfall is applied in full, the remaining amount available for Lenders is pitifully small? This loan was approaching 900 days overdue! Indeed. 900 days of Lendy penalty/default interest would likely leave the cupboard very bare!
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Monetus
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Post by Monetus on Nov 1, 2019 9:58:31 GMT
I believe the estimated outcome statement from the Creditors meeting in Birmingham said roughly the same recovery for PBLs and DFLs as an average. Bit bizarre really seeing as development loans were cited in the admin proposals as the reason the platform totally went south and bridging loans (in theory) are supposed to be safer etc.
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Monetus
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Post by Monetus on Oct 31, 2019 20:45:35 GMT
Can I ask the Creditors Committee are you satisfied with the work BDO are doing? From where I’m standing it’s wholly inadequate and unprofessional. I was wondering whether we could start a petition to have them removed and changed. Where you are standing is unfortunately without the necessary facts or information to be able to make an informed decision (through no fault of your own) due to the fact that the complex and sensitive nature of this administration means very little can be shared in the public domain. The handful of people who do know what's going on have all signed NDAs. You don't have to start a petition there is a specific process to follow. You can also make a complaint about an insolvency practitioner here: www.gov.uk/complain-about-insolvency-practitionerI personally see zero benefit to BDO being replaced currently - just additional expense and delay. I can't speak for other Creditors Committee members.
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Monetus
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Post by Monetus on Oct 31, 2019 17:39:25 GMT
LAG/the Committee are currently pushing RSM/Shoosmiths for exactly the same thing and we'll be meeting both at the next Creditors Committee meeting on November 22nd. Not sure how much information I can share but I can assure you that this issue and the payment waterfall as a whole are 100% at the top of our priority list. So there is/might be some reason/law why you can not tell me why I am not being repaid more of my own money even though the money was received and it is going to someone else who shall remain unknown to me. I would love to know what law anyone is going to quote for that one.
If the usual "it might effect future recoveries" is used then it is a joke because we are asking about money already returned.
I assume it will be legal/contractual matters if anything. In my opinion Lendy Ltd c/o RSM should be transparent and provide all investors with a specific breakdown of funds for every single recovery on the platform as they occur (but I am not RSM).
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Monetus
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Post by Monetus on Oct 31, 2019 16:39:03 GMT
Well before reaching any firm conclusion I have done the obvious thing and sent an e-mail to the Administrators asking them to detail why my 100% investment has provided a recompense of 45.5%. The non-disclosure agreement prevents creditor committee representatives from divulging any information. My money has been lost and I want to know where it has gone and why. LAG/the Committee are currently pushing RSM/Shoosmiths for exactly the same thing and we'll be meeting both at the next Creditors Committee meeting on November 22nd. Not sure how much information I can share but I can assure you that this issue and the payment waterfall as a whole are 100% at the top of our priority list.
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Monetus
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Post by Monetus on Oct 30, 2019 19:28:05 GMT
More proof then that LENDY liked default loans far more than we did. The entire Lendy business model under these terms demonstrated a fundamental conflict of interest between platform and investors in my opinion. Why would Lendy want borrowers to repay loans early when they were incentivised and able to levy obscenely high rates of penalty/default interest, all safe in the knowledge they would be at the front of the queue for payment? How many loans did we receive updates on which were “close to refinance” only to suddenly fall through at the last minute and then right back to square one?
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Monetus
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Post by Monetus on Oct 30, 2019 18:01:18 GMT
Someone please tell me that out of any recovery made by the administrator none of that will go to LB? Considering he has not lost a penny but made millions already, there is something that makes my insides turn at the thought he will continue to profit The "Joint Administrators' Proposals" published on July 15 include "Lendy Group Limited" (which is somehow not in administration) as claiming to be owed £800,000.00.
Presumably the members of the creditors committee have a bit more visibility of exactly why, and whether there is any legal requirement to and/or intention of honouring that debt.
Conversely, the administrators may have reason to make claims against LB, and indeed for all I know such claims may even be underway. It's not known, for example, who is expecting to receive the proceeds of the sale of Lendy's registered office / LB's home.
Anyone who knows actual details about what's going on is presumably either LB / RSM or under an NDA. You are correct.
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Monetus
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Post by Monetus on Oct 30, 2019 17:57:24 GMT
Furthermore, why have other recently-repaid loans not had the same amount withheld? I'm not in the other relevant loans but 2 other loans have paid back c.98%, correct me if i'm wrong. They either weren’t in default or refinanced for the full amount owed and repaid in full meaning accrued/penalty interest weren’t applicable or due to Lendy Ltd. This situation would mostly affect loans in default for a considerable period of time as serious (alleged) fees would have racked up.
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Monetus
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Post by Monetus on Oct 29, 2019 18:12:55 GMT
Now that "The database has been recovered and all accounts reconciled", would we have access to our Accounts on the Platform or a statement of Account Transactions in the near future (next few weeks, rather than months). Yes BDO are planning on sending out a report to all investors showing their individual position as soon as feasible.
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Monetus
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Post by Monetus on Oct 29, 2019 13:21:28 GMT
Lendy once famously said the integrity of the borrower is irrelevant, the quality of the security is all that matters. What about the integrity of the guy running the platform? Is that important? Clearly it should be. Absolutely. My experiences with Collateral and Lendy have shown me that platform risk and the integrity of the ownership should be your number one priority when investing. Be very careful who you lend your hard-earned money too. Also don’t add much, if any, weight to FCA regulation within the P2P sector currently IMO as there are barely any safeguards when it comes to protecting your funds from shady individuals and practices.
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Monetus
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Post by Monetus on Oct 29, 2019 9:31:24 GMT
Although we must of course wait for the explanation of how the amounts were determined from Lendy/RSM, I would speculate that the amounts we've received are the amounts that are unambiguously and definitively associated with the specific loans repaid, and that the "shortfall" is being held as a wider pool that may need to be dipped into for "claims against Lendy", but which may otherwise be distributed as originally intended, perhaps depending in part on the outcome of other actions, some of which may be confidential at this time. Excellent analysis - 100% correct.
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