Lendy administrator names M2 committee members
Lendy’s administrator has announced five members of the new ‘M2’ committee of lenders, who will assist with the recovery of funds from the collapsed peer-to-peer lending platform.
Lisa Taylor, who founded the Lendy Action Group (LAG), is on the committee, alongside Mike Powell, Mick Vassal, Dan Devonald and Ivan Murray-Smith.
Lendy investors are split into two groups: model 1 (M1) and model 2 (M2), which impacts how they receive recovered funds. M1 investors are defined as creditors, meaning their eventual payouts will be pooled with other creditors, while M2 are defined as investors, which means that they may be able to recover funds directly from loans.
RSM said in late July that it was seeking members for the M2 committee, following LAG’s court victory in 2021 which meant that M2 investors are being given priority in distribution payments.
“As noted previously, to form the committee it required at least three and no more than five M2 lenders to be represented,” said RSM.
“In accordance with the protocol, Lisa Taylor, first respondent at the directions hearing and representative of the LAG is a founding member of the M2 committee. Following discussions between the nominees, only four M2 lenders remainded and consequently the M2 committee was formed.
“As no more than four eligible candidates remained in the process (Lisa Taylor already being a member), the joint administrators did not need to ask the M2 lenders to vote on which candidates are to be appointed.”
Lendy fell into administration in 2019, with more than £160m outstanding on its loanbook and at least £90m of those funds in default.
RSM has extended the administration process until 23 May 2025.