Ex-Lendy bosses see assets frozen over £6.8m offshore payments

Administrators applied for an injunction after questioning around £6.8m in payments from Lendy to businesses registered in the Marshall Islands.

These were supposedly for marketing services performed for Lendy, however the administrators believe Brooke (pictured) and Gordon were ultimately the recipients.

The pair have seen their own assets along with properties and assets owned by the RFP Holdings Limited and LP Alhambra Limited companies linked to them frozen around the world

Administrators RSM have been investigating the company’s financial books and records and also interviewed Brooke and Gordon.

“The investigations have been concerned with a number of transactions, most significantly payments of approximately £6.8m that were paid to entities registered in the Marshall Islands for apparent marketing services carried out for Lendy,” the administrators’ latest report said.

“It is the administrators’ position, however, that these payments were ultimately for the benefit of Liam Brooke and Tim Gordon.”

As a result the administrators applied to court for a worldwide freezing injunction over the assets of Brooke and Tim, as well as proprietary injunctions on the properties owned by companies linked to the directors, RFP Holdings Limited and LP Alhambra Limited.

“The order was granted on 4 June 2020. Proceedings have now been commenced against Liam Brooke, Tim Gordon, RFP Holdings Limited and LP Alhambra Limited,” the report said.

“Owing to the nature of these claims, the joint administrators are unable to provide further information at this time.”

Lockdown hits sales

The report also revealed the Covid-19 crisis had severely affected potential sales on the Lendy loan book, where £30m of sales expected to be completed by this month were agreed.

“However, commencement of the UK lockdown in March 2020 led directly to the postponement and/or collapse of a number of asset sales which were well advanced,” the administrators said.

“For example, issues included purchasers either re-appraising their offers in the context of their concerns of the revised viability of projects or being unable to complete due to the loss of finance.

“Currently, although there are indications that conditions in the property market are improving as the lockdown is relaxed, the joint administrators anticipate the collapse in sales will delay and reduce asset realisations, albeit this is dependent on the overall trend of the UK property market.”

The administrators also repeated that the loan book had proved to be in a considerably worse state than was immediately apparent on their appointment, with significant issues in underwriting and administration processes, leading to multiple cases of litigation.

Majority of loans in insolvency

As a result, just 18 loans with a combined value of £16.8m have been sold since the administrators took over the loan book which had a value of £152m.

There are currently 16 live development finance loans valued at £89m and 13 live bridging loans worth £28m outstanding.

Of the development loans, 14 have formal insolvency proceedings against them, with either receivers or administrators having been appointed, while ten of the live bridging loans are in the same situation.