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Lendy administration extended three years as asset sales hit by coronavirus

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  • 16/04/2020
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Lendy administration extended three years as asset sales hit by coronavirus
The administrators winding up collapsed peer-to-peer lender Lendy have been granted a three-year extension to complete the process.

 

The court order extends the terms by 36 months until 23 May 2023 as the administrators seek to reclaim as much cash as possible for investors.

A notification sent out to investors this week by RSM Restructuring Advisory detailed the move and the next steps, with a progress report next due in June.

The process, like most of the property market, has been hit by the impact of the coronavirus.

RSM warned last month that it could significantly extend the administration process as properties are sold off slower than expected.

“A number of the asset sales which were being progressed, have now been postponed. It is uncertain as to when the conveyancing market will re-commence,” it said.

“It is also unclear whether the impact on the economy will result in current property sales being abandoned and potentially be a barrier to future property sales being secured.

“The joint administrators are therefore anticipating that the Covid-19 pandemic will cause the asset realisation process to be significantly pro-longed. The team will continue to work hard to progress recoveries and maximise realisations.”

However, in its update this week, the team said it was hoping to start distributing cash returned from four loans in the next six weeks.

 

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