Another £7.9m has been recovered from Lendy loans in the six month period ending 23 May 2022, while the total value of the administration fees reached just over £4.8m.
The latest update from administrator RSM showed that between 23 November 2021 and 23 May 2022, £1,154,145 was recovered from Lendy’s development finance loans.
A further £6,789,177 was returned from property bridging loans, facilitated by the now-defunct peer-to-peer lending platform.
RSM said that it is working on recovering funds from another 12 live development finance loans which have an outstanding value of £49.6m. Eight of the 12 loans have formal insolvency proceedings against them, with either receivers or administrators having been appointed.
Meanwhile, there are 18 live property bridging loans remaining, with an outstanding value of £22.4m. 16 of these live loans have formal insolvency proceedings against them.
In recovering these funds, the joint administrators charged fees of £328,080 during the six month period.
RSM noted that time costs incurred since its appointment now total £4,801,172, including investigation time. However, to date just £2.4m has been approved for payment to RSM.
“The quantum of costs and expenses is higher than the estimates previously provided to creditors on 15 July 2019,” said Damien Webb, joint administrator at RSM.
“This is because the joint administrators were unable to provide a realistic estimate due to the uncertainty on the work that we required be undertaken by third parties.
“Legal costs incurred have been high due to the complexities of the case and the required actions that the joint administrators have been required to take. The joint administrators have provided a high-level scope of engagement below for professional firms that have been paid in the period.”
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He added that the majority of time spent in the period has been dealing with the collect out of the loan book and considering potential actions and third party claims.
“The work done and the time costs in this category are fundamental to the recoveries to date and future recoveries in the administration,” he said.
The administration update also pointed out that while the administration period was previously extended to 23 May 2023, it is not yet possible to ascertain when the administration will actually end.
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