Lendy investors withdraw more than £700k in three weeks
Lendy investors have withdrawn more than £700,000-worth of available funds from the platform over the past three weeks, leaving just under £1.83m unclaimed.
The latest update from administrator RSM said that 10,077 investors now have unclaimed, available funds in their platform account, totalling £1,829,131. This is down from almost £2.5m at the end of April.
The majority of the withdrawals over the past three weeks came from investors that were anti-money laundering (AML) verified but unable to withdraw funds, for example because there was no bank account linked. The amount of unclaimed funds in this category fell from £808,675 at the end of April to £181,356 as of 18 May.
Meanwhile, 7,987 investors which are AML verified and have the withdrawal function enabled, now have a total of £1,034,252 sitting in their accounts. This is up from £1,032,048 at the end of April.
And finally, there are 1,516 investors that failed the verification process and are unable to withdraw £613,523, down from £618,487 at the end of last month.
Peer-to-peer property lending platform Lendy fell into administration in 2019 with more than £160m outstanding in its development finance and bridging loan book. At least £90m of those funds were in default at the time of its collapse.
The administration process has dragged on due to the complex nature of the Lendy business model, allegations of director fraud and numerous court cases about the distribution of funds. Last month, RSM applied to extend the administration process until 23 May 2025.
Following the resolution of a ‘cost protocol’ court case in January, distributions were recommenced on 5 January 2023. Since then, RSM said it has processed distributions totalling £17,039,917.