Lendy investors face “prolonged” recovery process
Disruption due to the coronavirus will cause repayments to Lendy investors be delayed, the platform’s administrator has confirmed.
In a note to investors, administrator RSM said that a number of the asset sales which were being progressed have now been postponed.
Joint administrator Damian Webb added that he is uncertain as to when the conveyancing market will reopen, and when it does, it is unclear whether the economic impact of the coronavirus pandemic may lead to some property sales being abandoned.
Read more: RSM writes off £400k as Lendy admin costs spiral
“The joint administrators are therefore anticipating that the Covid-19 pandemic will cause the asset realisation process to be significantly pro-longed,” Webb added.
“The team will continue to work hard to progress recoveries and maximise realisations.”
In the investor note, Webb told investors that all RSM and Lendy staff are now working remotely from home and all offices have been closed. However, he reassured investors that “we have the appropriate continuity plans in place to minimise any risks and continue to provide the service you would expect from our people.”
He added that money laundering checks will continue to be processed and offered a full open extension for any Lendy investors who have yet to provide these documents.
Just last week, RSM told investors that it hoped to keep its offices open for as long as possible during the pandemic, and expressed confidence that it could continue to manage the Lendy administration process even if that meant that staff were working remotely.
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