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.
This is a rare opportunity to acquire a well-established and profitable law practice in Hampshire, with a diverse portfolio emphasising crime, matrimonial, and personal injury work.
This well-established law firm in Merseyside has a strong focus on privately held work, offering a diverse range of services, with significant income from residential and commercial conveyancing.
This is an exceptional opportunity to acquire a well-established legal practice with a strong turnover and a diverse range of services including a predominant focus on family law.
18
|
Jul
|
Buyers swoop for divisions of collapsed recruitment and logistics firm | BUSINESS SALE
Two separate buyers have acquired three divisions of a Great...
18
|
Jul
|
Hotel group sells off five more locations | BUSINESS SALE
A hotel group with 16 sites in rural and coastal locations a...
18
|
Jul
|
Administrators market £28.4m-turnover furnishing firm for sale | ADMINISTRATION
Administrators are seeking a buyer following the collapse of...
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
We can help you capitalise on insolvent businesses. We list UK businesses in administration, liquidation and with winding up petitions daily. Ensuring our members never miss out on an opportunity
Please choose your settings for this site below. For more information please read our Cookie Policy
These cookies are necessary for our website to function properly and provide you with access to all features.
These are analytics cookies that help us to improve the way our website works.
These are used to improve the functional performance of the website and make it easier for you to use.