Peer2Peer Finance News
The UK's first peer-to-peer finance magazine for investors and the industry
  • Home
  • News
    • Personal Finance News
    • Industry News
    • SME News
    • Global News
  • Property
  • IFISA
    • IFISA Guide
  • Video
  • Open Banking
  • Cryptocurrency
  • Features
    • Joint Ventures and Promoted Content
  • Comment & Analysis
  • What is P2P?
  • Partners
  • Events
    • Past Events
  • P2P Power 50
    • Power 50 2020
    • Power 50 2019
    • Power 50 2018
    • Power 50 2017
  • Sign up to our e-newsletters
  • Magazine
  • Directory
  • Jobs
  • My Account
    • Manage Account
    • Change Password
    • Log In
    • Log Out
Optimized-property
November 27 2018

Collateral investors still waiting on returns six months into administration

Marc Shoffman Industry News, News BDO, Collateral, FCA, p2p, property loans

THE administrator of collapsed peer-to-peer lender Collateral is still unable to estimate the likely returns for investors and creditors six months into the administration.

A progress report from BDO, which is working on the administration of Collateral, revealed it was still working on accessing “user-friendly” data on investor holdings and on chasing payments from borrowers.

“It is not possible to estimate the likely returns either to investors and creditors,” BDO said.

“This will depend, to a very significant extent, on the quality of the loanbooks and the amount of effort required to obtain settlement including potentially taking legal action against borrowers in default, together with the extent to which the companies’ records can be recreated to provide the necessary analysis of each investor’s exposure to specific loans to determine the nature and quantum of any trust claims.”

BDO has previously said the estimated aggregated claims of investors and creditors exceed the book value of the assets held by the companies.

The latest update showed BDO – which took over the administration of Collateral in April 2018 – has obtained “numerous spreadsheets, databases and other documents” showing investor holdings but it isn’t in a format that would allow “efficient or effective recovery and manipulation.”

BDO said it had considered restoring the original database, but it was felt this would be too costly.
Instead, the administrators are focusing on working with Collateral’s former IT consultant and its own experts to extract information from the data they have obtained.

The report said recovery of the loanbook remains a “major work stream,” with two property loans settled in full but other borrowers are refinancing or are working on settlement offers.

Some property loan borrowers have not engaged with the administrators and may face possession proceedings.

BDO is also working on claiming assets from those who haven’t repaid loans on the P2P pawnbroking side of the Collateral business.

Manchester-based Collateral closed down at the end of February after it emerged that it had been operating without the correct regulatory permissions.

Its administration was initially managed by Refresh Recovery before the Financial Conduct Authority installed its own auditor with the appointment of BDO.

Zopa helps boost Augmentum Fintech fund returns Funding Circle fund secures £150m British Business Bank facility

Related Posts

Open banking allows high street banks to share anonymised customer data with approved third parties

Industry News, News, Open Banking, Top 3

Lenders set out next steps for open banking

Woman hand MacBook Pro with social networking service Google

Industry News, News, Top 3

Google updates the FCA on its scam ad crackdown

up

Industry News, News, Top 3

ArchOver sees rise in enquiries

Popular posts:

  • The House Crowd goes into administration
  • Sunak to announce stringent CBILS successor scheme
  • FCA warns The House Crowd investors against using…
  • Octopus Choice has permanently closed
  • Metro Bank plans to offer RateSetter lending through…
  • Cyan Finance launches IFISA to help investors go green
Back To Top
  • Home
  • Contact
  • About
  • Team
  • Advertising
  • Subscribe
  • Privacy
  • T&Cs
  • Disclaimer

Follow Us on Social Media

© Peer2Peer Finance News 2020
• Additional design by