LENDY investors have been told that £11m held within the collapsed peer-to-peer lender’s client accounts will be available to withdraw “within the next 21 days”.
In a letter to Lendy investors, administrator RSM said that anti-money laundering checks are almost complete. Once finished, RSM will remove any restrictions on client accounts and allow investors to withdraw their available funds.
“We anticipate within the next 21 days these balances will be allocated to your investor account,” wrote Damian Webb, joint administrator. “These balances will be allocated to your investor account prior to the withdrawal system going live.
“Please note we would encourage all investors to withdraw funds from their client money accounts, there will be no on-going trading on the platform, hence investors should withdraw funds promptly.”
Webb added that all historic withdrawal requests transactions where funds were not distributed to investors will be cancelled.
The administrator also told investors that there has been “significant activity in relation to the realisation of the Lendy loanbook”, with some loans expected to be realised before Christmas. Once realised, the funds will be promptly distributed to investors clients accounts.
“Due to the commercially sensitive nature of the negotiations I do not wish to go into detail about specific loans,” added Webb. “However at an overview level the process is moving forward and there is real traction on all aspects of the loanbook.”
Webb added that RSM was working to maximise the value in any underlying property assets, which includes “making claims against borrowers’ personal guarantees and litigation in respect of professional indemnity claims”.
With respect to Lendy Wealth – an auto-investment product aimed at high-net-worth investors – RSM said that it would be contacting investors within the next four weeks to illustrate their exposure by loans and their potential overall recovery.