Lendy creditors to vote on administrator’s £1m fee proposal
LENDY’S creditors will vote on whether to approve administrators’ fees of up to £1.025m at a meeting on Wednesday.
Administrator RSM has proposed a fee cap of £1.025m plus VAT for the first 12 months of the investigation. This figure was reached following an estimate of the administrator’s full-year costs, as stated in the Joint Administrators’ Proposals and Report dated 15 July 2019.
However, RSM added that the fee was dependent on the creation of a creditor’s committee, which should number between three and five creditors.
A creditors’ meeting is being held on Wednesday to approve RSM’s proposals, which will be held at The National Conference Centre, Coventry Road, Bickenhill, Solihull at 11.00am.
As well as voting on the fee cap, attending creditors will decide whether to approve other resolutions, including the creation of the creditor’s committee. It will also vote on whether the administrators “should arrange to distribute available funds from the realised assets to those creditors entitled to them in such manner as they consider will lead to an early distribution of the available assets in an economic manner”.
Lendy’s investors were informed by RSM last week that they will have to wait until October – at the earliest – before they can make any withdrawals from their Lendy accounts.
The platform went into administration in May, shortly after the Financial Conduct Authority (FCA) placed asset restrictions on the peer-to-peer lending platform.
Since then, RSM has been combing through the platform’s accounts in an effort to recover investor funds. RSM has warned that a lack of clarity over the value of loans and who the unsecured creditors are.
In its first statement of affairs, made public in mid-July, RSM stated that Lendy investors are likely to receive an average of 57p on the pound for development finance and 58p for every pound from bridging loans.
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