Lendy administrators still expecting recoveries from £60m of loans
Lendy administrators are still pursuing almost £60m-worth of loans where they expect further recoveries, more than four years after the peer-to-peer property lending platform collapsed.
A six-month update from RSM reported that there are currently 12 live development finance loans (DFLs) with an outstanding value of £47.8m, as of 23 May 2023.
“A live loan is any loan where the joint administrators are pursuing and expect further recoveries, either through asset realisations or claims under professional indemnity or guarantees,” RSM said.
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There are also 19 live property bridging loans (PBLs) with an outstanding value of £10.6m, all of which have formal insolvency proceedings against them.
RSM’s update showed that £34.6m was realised from Lendy’s DFLs during the first 42 months of administration, with £16m distributed to investors.
£5.4m from DFLs was distributed to investors during the six-month period to 23 May 2023.
Read more: Lendy investors withdraw more than £700k in three weeks
£22.6m was realised from PBLs over the same 42-month period, with £10.2m distributed to investors.
£7.37m from PBLs was distributed to investors during the six-month period to 23 May 2023.
Lendy officially fell into administration in May 2019, amid legal disputes, regulatory restrictions, rising defaults and slow repayments to investors.
Since then, allegations of director fraud, numerous court cases regarding the distribution of funds and complexities within the loan book have caused the administration process to drag on.
RSM has extended the administration process until 23 May 2025 and says that it is unable to ascertain when it will end.
It has now racked up £5.89m in fees, as of 23 May 2023.
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