Mon, 27 May 2019 | ADMINISTRATION
A peer-to-peer (P2P) banking firm has collapsed into administration following a steep decline in buyer demand and as a result of severe cash flow difficulties.
Lendy Limited, a P2P lending marketplace, was forced to call in professional insolvency specialists RSM Restructuring Advisory LLP to handle the administration, with partners Damian Webb, Phillip Rodney Sykes and Mark John Wilson appointed as joint administrators.
The administrators, however, were also appointed for two further unregulated firms, Lendy Provision Reserve Limited, and Saving Stream Security Holding Limited.
Lendy Limited was regulated by the Financial Conduct Authority (FCA), with an ongoing investigation by the British financial watchdog leading to the company's collapse. Lendy was put on the FCA's watch list in January when its troubles appeared to be mounting.
The lending marketplace was instructed, "[to not] in any way dispose of, deal with or diminish the value of its assets and must not in any way release client money without in either case the prior written consent of the authority."
Despite this, Lendy's interest payments, originally due on May 1, were delayed for two weeks which, according to the lender, was a result of technical problems with its banking partner. Trading in the secondary market has since been suspended but had little impact on the company itself due to the general lack of buyer demand.
Prior to administration, it became clear that Lendy had acquired an unsustainable level of defaults on its development loans and a subsequent unsatisfactory level of recoveries, forcing the company into administration.
Its outstanding loan portfolio amounts to roughly £150 million, £90 million of which are in default.
For more news stories about administrations click here. For all our administrations listings, click here.
Established: 15-20 years. Flexible Principle Exit. Number of staff: 5-10. Premises and Staff Continuity Essential. Offers invited.
Well established and highly profitable practice looking to sell due to other business interests. Established: 10 years+. Number of staff: 10-20. Happy to do a thorough hand over. Offers invited.
Profitable, high quality and professional accountancy firm for sale. Established: 20 to 25 years. Purpose-built offices available to be retained or portable locally. Number of staff: 5 to 10. Offers invited.
|
15
|
|
Aug
|
Payroll and HR companies acquired by software group | BUSINESS SALE
IRIS Software Group has finalised the agreement of intent to...
|
14
|
|
Aug
|
NG Bailey’s acquisition of Freedom boosts its turnover by 16 per cent | BUSINESS SALE
Engineering and services group NG Bailey’s strategic a...
|
13
|
|
Aug
|
Forensic science equipment supplier completes MBO | MBO/MBI
A private equity firm has backed the management buyout of a ...
Sign up to receive our acquisition alert emails to get your FREE guide
Business Sale Report is your complete solution to finding great acquisition opportunities.
Join today to receive:
All this and much more, including the latest M&A news and exclusive resources