Lendy

Two-thirds of Lendy's live loans have administrators or receivers appointed




Two-thirds of Lendy’s live loans have had either administrators appointed over the company or receivers appointed over the property, according to administrators RSM Restructuring Advisory LLP.

The lender — which is currently in administration — has 54 live loans, with a loan book of circa £152m.

This includes 29 live bridging loans with an outstanding value of £36m, secured against assets historically valued at £81m.

Some 22 of these loans have formal insolvency proceedings against them, and the strategy in respect to the remaining seven loans has not been confirmed.

Meanwhile, it has 25 live development finance loans with an outstanding value of £116m, secured against assets with a gross development value of £265m.

In total, 14 of these loans have formal insolvency proceedings against them, while the strategy for the remaining 11 has not yet been confirmed.

It is anticipated that there will be further insolvency appointments for both the bridging and development loans.

Based on current information, the overall average return to investors is estimated to be around 57–58p per pound before costs.

However, the anticipated recovery on the development finance and bridging loans vary, ranging between 7p to 100p of the capital provided by investors.

Each loan is reviewed on an individual basis and strategies include enforcement, refinance, consensual sale, and build-out of the scheme and subsequent sale.

These strategies are said to be implemented based on formal reporting procedures with the necessary input of third party professionals.

The company is estimated to owe £9.4m to unsecured creditors, and the joint administrators have proposed that they should continue to manage the business to maximise realisations from the loan book for the benefit of investors and creditors.

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