The peer-to-peer lender also explained it has recovered all the capital, interest and bonus payments on two of its overdue loans, with more due in the coming weeks.
And it unveiled the four options investors will be offered for each overdue loan – asset sale, build out, restructure or refinance.
Lendy has been under the spotlight since October after it was revealed 68% of loans on its book had gone passed their due date.
It has since overhauled its board and recoveries process.
Not deliver 100% repayment
An email to investors today said: “We know that a number of loans with significant overdue repayment dates will not deliver 100% repayment.
“These lenders will receive a full a breakdown of the proposed repayment calculation once the specific loan reports are complete.
“This is expected early in the New Year as the recoveries team is working throughout the Christmas period to ensure all sites are inspected and valuation reports written.”
Four options for investors
Alongside the appointment of new board members, Lendy put in place a panel of firms to advise on how it could best recover money from projects its members had invested in.
It confirmed that these firms included Middleton Barton as recoveries specialist, Duff and Phelps, Harrisons and SPF Group as insolvency practitioners, and Walker Morris as legal adviser.
“These firms are currently undertaking a loan by loan review and once their respective reports are complete, we will be able to answer your questions with much of the detail you are looking for,” Lendy said.
The reports may result in a range of actions:
- Where repayment is currently outstanding, advice will be sought on a detailed reinvestment or exit strategy.
- Where a reinvestment plan is included, it will be undertaken within an approximate timescale to completion and projected valuation.
- Where an exit strategy is considered the most appropriate option, detailed capital recovery figures will be included.
“The recovery recommendation will be discussed by the Lendy Recoveries Committee and board, following which lenders will be provided with options and supporting information.
“This may result in one of four options; asset sale, build out, restructure or refinance,” it added.