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Proposed Lendy administration fees could cost £1m in first year

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  • 16/07/2019
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Proposed Lendy administration fees could cost £1m in first year
Administrators completing the winding up of collapsed peer-to-peer lender Lendy believe it will cost up to £1m in fees for the first year of work.

 

The potential £1m bill, which would be taken from the sale of Lendy’s assets, was revealed in the latest update to creditors from RSM Restructuring Advisory, which has been appointed administrator.

In the update the administrators also confirmed that a meeting of creditors will take place which will include votes on proposals to resolve the business, liquidating Lendy’s assets, and on the insolvency firm’s pay.

 

In total eight proposals have been made by the RSM team. They include:

  • continuing to manage the business to maximise returns from the loan book for the benefit of the investors and creditors;
  • arranging to distribute available funds from the realised assets to creditors entitled to them in such manner as they consider will lead to an early distribution of the available assets in an economic manner;
  • authorisation to make applications to court for directions as they consider appropriate with a view to achieving the purposes of the administration or their proposals;
  • carrying out all necessary investigations to comply with their obligations under the Company Directors Disqualification Act 1986, to co-operate with Financial Conduct Authority (FCA) in its investigations and to identify potential areas for recovery for the benefit of investors and creditors;
  • and that Lendy exit administration through a Creditors Voluntary Liquidation.

 

Creditors have the option of forming a creditors’ committee to work with the administrators, but if not, creditors will be asked to approve the potential £1m bill.

The meeting will be held at The National Conference Centre on 31 July.

 

 

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