RSM's time cost for administrating Lendy hits £1.7M

RSM, Lendy's administrator, has claimed its remuneration and expenses have gone over its original estimates as the process has been more complex than what was expected.

Between 24 May 2019 and 23 November 2019, RSM said it has incurred time costs totaling £1,736,829, working on the administration of the collapsed peer-to-peer property lender.

As of 23 November 2019, RSM has logged £926,377.94 of expenses, including more than £50,000 on legal fees and more than £6,700 on stationery and books.

RSM said in a 19 December update:

“The loanbook has proved to be in a significantly worse state than was immediately ascertainable on our appointment.

“Negotiations with borrowers and overseeing both the realisation of property assets and the performance of receivers/administrators to realise secured assets have been complex, difficult and time-consuming.”

Other issues that took longer than expected included the analysis of the legal position of ‘model 2’ loans – a different structure that Lendy implemented for investors in 2015 – and compliance with anti-money laundering regulations.

Read more here

Join us February 26-27 for the Property Portal Watch Conference Bangkok 2020.