blog header image

Posted : 29 Oct 2019 at 08:48:28
Category: News

Share this article

The administrators of collapsed peer-to-peer lender Lendy have revealed they are taking legal action against borrowers and making professional indemnity claims to help recoup investor losses.

At present around £11m is expected to be available for investors to claim from the failed firm, which is likely to be allocated in the next three weeks.

In the latest update to investors Damian Webb, joint administrator at RSM Restructuring Advisory, said there has been significant activity in realising the Lendy loan book and he hoped further cash would be recovered.

“Due to the commercially sensitive nature of the negotiations I do not wish to go into detail about specific loans, however at an overview level the process is moving forward and there is real traction on all aspects of the loan book,” he said.

“We anticipate further loans will be realised prior to Christmas and these will be promptly distributed to investors’ client accounts.

“In addition, to the realisation of the underlying property assets all other actions are being taken to maximise realisations for investors. This includes making claims against borrowers’ personal guarantees and litigation in respect of professional indemnity claims.”

AML checks

When Lendy collapsed two thirds of its outstanding loans worth a combined £152m were in some form of formal insolvency process.

And investors were warned they were likely to receive just half their money back – with some potentially getting almost nothing back.

The administrators also revealed other failings and serious questions about how the firm was run, noting that further anti-money laundering checks were required.

In the update RSM said that currently around £11m awaiting distribution was being held within the client account and it anticipated this being allocated within the next 21 days to investor accounts.

It confirmed that 77 per cent of the required additional checks had been completed and will make the case available once all these remaining checks have been finished.

Original source; Specialist Lending Solutions

SIMILAR NEWS

blog header image
NEWS
NUMBER OF FURLOUGHED CONSTRUCTION WORKERS FALLING FASTER THAN WIDER ECONOMY

Number of furloughed construction workers falling faster than wider economy  Latest HMRC data shows size industry’s furloughed workforce shrank by 15% in March The numbe ...

blog header image
NEWS
WILL THEY COME BACK? WHY BRITISH CONSTRUCTION LOST ITS EASTERN EUROPEAN WORKFORCE

In recent weeks, a persistent rumour has been circulating about migrant workers in construction. The specifics differ, but the central premise is the same: ‘foreign workers have taken the govern ...

blog header image
NEWS
CONSTRUCTION OUTPUT GROWS BY 1.6% IN FEBRUARY

Construction output grew by 1.6% in February 2021, largely thanks to a 1.5% increase in new work and 1.9% increase in repair and maintenance, as the industry maintains its recovery The level of constr ...

blog header image
NEWS
IR35: RISHI SUNAK URGED TO AMEND ‘FLAWED’ OFF-PAYROLL RULES TO ENSURE SELF-EMPLOYED RIGHTS

IR35 LEGISLATION must be re-examined to correct the "fundamentally flawed" nature of how off-payroll rules operate, a group of MPs have said. IR35 changes kicked in this month, following a year of del ...

blog header image
NEWS
FREE HOME TESTING COVID KITS NOW AVAILABLE TO ALL CONTRACTORS

Construction companies can now order free Covid test kits for workers to use at home. The extension of the workplace testing regime will supply home test kits to companies with over 10 workers where ...

blog header image
NEWS
EMPLOYMENT LAW CHANGES: WHAT YOU NEED TO KNOW

With Brexit, Covid, and new tax rules for the self-employed, this year sees a plethora of significant changes in the field of employment law. Here is a recap of what you need to know. 1. End of furlou ...

business-directory Business Directory
smartbusinessdirectory Payroll Services Business Directory
truebusinessdirectory payroll-services Directory
payroll-services Directory