LENDY’S administrators are making a distinction between two types of investors in the collapsed platform and have invited those who are technically peer-to-peer investors to set up a new group to represent their interests.
Lendy initially operated a structure whereby investors lent to Lendy itself, which then gave the money to borrowers, known as model 1. However, this was not deemed as a P2P arrangement and a new structure – model 2 – was set up from 2015, meaning that investors began funding the P2P loans directly.
The administrator, RSM, has assumed those in model 1 are treated as creditors but model 2 are investors – meaning they may get their money back faster – but it is seeking legal advice on the matter.
Read more: Lendy distributions begin
Model 2 investors are being invited to set up a consultancy liaison body (CLB) to represent the interests of those with the P2P loans.
“Nominations will only be accepted from investors who have a model 2 investment and who are not a member of the Lendy creditors’ committee,” RSM said.
“In order for a CLB to be formed, there must be at least three and no more than five investors to be represented on the CLB.
“If more than five nominations are received, the five investors with the largest investment will be invited to form the CLB.”
The deadline for nominations is 5pm on 15 November.