Lendy is set for another three years in administration.
The collapsed peer-to-peer property lender’s administrator RSM has received court approval to extend the administration process by 36 months to 23 May 2023.
The platform entered administration on 24 May 2019 and the process usually takes a year before a company is then liquidated.
The process has been held back by the need to redo anti-money laundering checks on investors and the recovery of assets is now taking longer due to the coronavirus outbreak.
The Lendy Action Group (LAG) has raised funds to appoint a solicitor to represent investors who are concerned about “mis-selling and misleading materials, and structure of notes, terms and conditions since Lendy’s inception.”
They are also unhappy about a proposed ‘distribution waterfall’ that sees former Lendy investors split into two groups: model 1 and model 2, which impacts how they receive funds recovered from the collapsed peer-to-peer lender.
“The extension allows the administrators to continue to progress matters” RSM said.
“Further detail will be provided in the next progress report issued on or before 19 June 2020.”
RSM said there would be interim distributions for five loans over the next six weeks, DFL021, PBL095, PBL196, PBL197 and PBL137.