The Lendy administration process could extend beyond its 2023 deadline, administrators RSM have warned in a new update to investors.
The peer-to-peer lending platform went into administration in May 2019, and RSM recently won a 36-month extension to carry out checks and investigations.
However, in an update covering the six months to 23 November 2020, the administrator said that “it is not possible to ascertain at present when the administration will end.”
The update also confirmed that approximately £9m was recovered from Lendy’s loan book during the six month period.
£8.4m was recovered from six development finance loans, while £980,000 was realised from four property bridging loans. Since the beginning of the administration proves, £11.2m has been recovered via development finance loans, and £5.6m has been realised from property bridging loans.
The total value of the Lendy loan book was approximately £152m when the firm went into administration.
The administrator’s update also stated that a 10-day trial will commence on 28 June 2021 to clarify the legal position of the ‘distribution waterfall’ employed by RSM. The proposed ‘distribution waterfall’ sees former Lendy investors split into two groups: model 1 and model 2, which impacts how they receive funds.
RSM was unable to update investors on the status of its investigations into Lendy’s former directors Liam Brooke and Tim Gordon, saying that “this has involved a significant amount of work”.
During the six months to 23 November 2020, RSM presented a winding up petition against Lendy Properties based on sums alleged to be due to it from the sale of a boat. The petition was subsequently withdrawn after a settlement was reached with Lendy Properties and the boat’s owner.