A Lendy administrator has been earning £575 per hour to oversee recoveries as the costs of managing the collapsed peer-to-peer property lender surpassed £3m.
The figure was revealed in the latest progress report by RSM, which was appointed administrator of Lendy in 2019.
The update, for the six months to 23 May 2021, said the administrator was spending “significant time” overseeing loanbook collection so has appointed someone with sole responsibility for recoveries.
“There were significant issues in the company’s underwriting and administration process,” the RSM update said.
“Therefore, the administrators allocated an experienced member of staff to oversee both the realisation of property assets and the performance of the receivers and administrators appointed to recover the associated loans.”
RSM said this member of staff was earning £575 per hour but this has been reduced to an average daily rate of £1,232.
Total time costs incurred since appointment to manage the whole administration have reached £3.7m, RSM said.
The latest updated revealed that £13.3m has been realised from the loanbook in the six months to May.
Of this, £8.3m was from development loans and £5.1m from bridging finance.
This takes the total value of development loans recovered since May 2019 to £32.9m, while £12.8m has been realised from bridging loans.
There are still 16 live development loans with a value of £83.1m, according to the report.
RSM said 11 of these have entered insolvency proceedings.
The development loanbook was worth £117m when Lendy collapsed in May 2019.
There are currently 31 live bridging loans with an outstanding value of £34.6m.
Of these, 28 have entered insolvency proceedings, RSM said.
The bridging loanbook was worth £46m in May 2019.
RSM said it was still not possible to say when the administration, which has already been extended by three years, will end.
Investors have been receiving interim distributions from some loans since Lendy’s collapse.
The report revealed that there is another £8.7m of loan receipts to be distributed.
This represents 15 loans where payments have been delayed while RSM undertakes a review and “data cleanse” of non-personal investor accounts.