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Peer2Peer Finance News | July 24, 2019

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BondMason urges Collateral investors to back administrators

BondMason urges Collateral investors to back administrators
Marc Shoffman

DIRECT lending specialist BondMason has urged Collateral lenders to support BDO in the administration of the collapsed peer-to-peer lender but insists it is ready to step in on the loanbook if needed.

BondMason had offered to manage the loanbook of Collateral after the lender collapsed in February when it emerged that the platform had been operating without the required regulatory permissions.

But administrator BDO this week said investors are likely to be treated as creditors, suggesting the loanbook won’t be offered to other firms.

Stephen Findlay (pictured), chief executive of BondMason, said the firm has been regular contact with the team from Collateral and the administrator and is happy to provide resources or step in to manage the loans in which it has invested.

“We are monitoring the announcements from BDO and we reserve our right to consider our position in the fullness of time, based on the development of the process,” Findlay said.

“We have a complete and accurate record of all investment positions and security.

“We remain watchful over the process and expect an appropriate outcome based on the investments made and their performance and will fight to ensure that the outcome is inline with these expectations.”

BondMason has invested 2.48 per cent of its portfolio in Collateral’s property loans but does not have exposure to the pawnbroking side of the business.

“The process needs to be allowed to run its course, and BDO needs to be supported to ensure they have the best chance of delivering the best outcome and are held accountable for the same,” Findlay added.

“We remain an engaged, watchful and keen participant. We have experience of managing, and being involved in administration processes and we will use our experience for the benefit of our clients.”

Read more: FCA reveals it intervened in Collateral administration to protect investors