Collateral administrator seeks further investor detail on loan exposures
THE ADMINISTRATOR of collapsed peer-to-peer lender Collateral has written to a ”small number of investors” to seek further clarity on their loans as it continues to reconcile the platform’s loanbook.
BDO, which took over the administration of Collateral last year, said it has matched investor accounts for around 85 per cent of users, but has contacted 30 clients to seek further information.
“We have recently written to a small number of investors who have the largest discrepancies between the detailed analysis and the summary information balances, in an attempt to identify why such discrepancies have arisen,” BDO said.
“We have already received some helpful feedback from some of the investors concerned and further work is being carried out to establish whether we can refine the detailed analysis and reconcile the account balances.
“We will update investors further in due course.”
BDO said reconciling the accounts is essential as each investor will have different claims against the loans into which they invested.
The administrator also revealed it had gained permission from investors to take enforcement action against borrowers who are unable or unwilling to repay their loans.
Manchester-based Collateral closed down at the end of February 2018 after it emerged that it had been operating without the correct regulatory permissions.
BDO has previously said the estimated aggregated claims of investors and creditors exceed the book value of the assets held by the companies.
