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Peer2Peer Finance News | September 18, 2019

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Interested firms circle over Lendy but administrator sits tight

Interested firms circle over Lendy but administrator sits tight
Marc Shoffman

LENDY’S administrator has received offers to buy the collapsed peer-to-peer lender, but has not yet decided on the best course of action.

Peer2Peer Finance News understands there has been at least one formal offer to acquire the platform’s investors and loans, subject to due diligence. However, little progress has been made as the administrator, RSM, has allegedly been reluctant to engage in talks.

A well-placed source has suggested that a lack of communication from the administrator is making it harder for potential buyers to assess the platform and make an offer.

RSM confirmed to Peer2Peer Finance News that third parties have expressed their interest in the platform.

“There has been significant interest in the Lendy portfolio but at this point in time the strategy for unwinding the loanbook has not been formalised,” RSM said in an emailed statement.

Lendy went into administration in May after months of concerns about mounting levels of arrears.

The administration is being managed by RSM, which this week said it is still not able to authorise the withdrawal of funds from client accounts but is “conscious this is an issue for investors”.

RSM said in a letter to investors on Monday that it needed to complete a number of regulatory tasks before it could authorise these withdrawals.

Un-picking the company’s loanbook has proved a complex task and RSM warned last month that recovering funds from the provision fund would be tricky.

RSM said on Monday that it will be issuing a report this month to creditors, which will outline its strategy for the administration. This will be shared with investors.

The FCA had been keeping a close eye on Lendy’s activities in recent months, and confirmed in April that it had placed restrictions on the platform.