Lendy distributions resume
Lendy distributions will soon resume, following the resolution of a court case.
Administrators RSM told former Lendy investors that they are now ready to recommence interim distributions of 65 per cent of net realisations on loans which have been recovered to date.
Last month, RSM said that it was hoping to make the next batch of distributions by mid-January, pending the outcome of a court order.
The court order involved creating a ‘cost protocol’ which worked for both the investors and the administrators.
“Following considerable work and correspondence, the terms of the protocol are now agreed, subject to the terms being documented,” said Damian Webb, joint administrator with RSM.
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“Once the drafting of the cost protocol is complete, the joint administrators will share details of the protocol with the creditors, investors and the Financial Conduct Authority. Following which, the joint administrators will make the application to court to approve the protocol.”
Webb added that the first payments will be made on four development finance loans, including additional payments on a Devon-based arboretum.
Following these distributions, the balance that investors are able to withdraw will be shown as their ‘available balance’ on their Lendy account.
However, Webb noted that there may be delays to the processing of these payments.
“The team are likely to receive a considerable number of withdrawal requests,” he said.
“As previously noted, the remaining team consists of skeleton staff and therefore investors should expect an extended lead time for withdrawal requests to be processed and payments made.”
RSM recently confirmed that the administration process will extend past its May 2023 deadline, although a new deadline has yet to be set.
Read more: £7.9m recovered from Lendy loans as RSM fees approach £5m