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.”
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