London Capital and Finance

Supercalafragalistic

Apparently, a money box live journalist is interested in interviewing any people who have suffered through this debarcle. If you look on the london capital and finance group on facebook, details are posted there.

Reaper

I don't think you should be posting email addresses out of context. By all means provide a link to a page where he requests people contact him but don't just post his email address and tell everybody to email him.

Maybe he wants specific types of people for a limited period of time rather than everybody who ever invested in LCF forever? We can't tell from that.

Supercalafragalistic

Reaper wrote: »

I don't think you should be posting email addresses out of context. By all means provide a link to a page where he requests people contact him but don't just post his email address and tell everybody to email him.

Maybe he wants specific types of people for a limited period of time rather than everybody who ever invested in LCF forever? We can't tell from that.

Noted and ammended

Jelli

Here are a bunch of lcf marketing emails for your reading pleasure.

https://drive.google.com/drive/folders/1dDGWU5O2POuFogJLo3C0jSexegQcard-?usp=sharing

jimjames

There has been another unofficial update from the administrators.

https://damn-lies-and-statistics.blogspot.com/2019/03/lcf-administrator-update-1st-march-2019.html

More questions raised again.

Why are the borrowers not paying any interest? How did LCF intend to pay bondholders if they're not getting any money?

Borrowers agreed to pay the 25% agency fee. Why would they do that on top of their loans?

jimjames

According to the update from the administrators no loans have been repaid or are expected to be repaid imminently.

This doesn't tally with the Companies House record. According to that there was a loan from LCF that had the charge cleared on 15th Feb 2019

https://beta.companieshouse.gov.uk/company/02504629/charges/N_PEkKbo30q6wtlY0HcTEu_XHAY

How can a charge be cleared when LCF have apparently not received any money from the company? This company is also significantly overdue filing accounts and only accounts from 2015 are available, long before LCF lent so much money

Reaper

jimjames wrote: »

This doesn't tally with the Companies House record. According to that there was a loan from LCF that had the charge cleared on 15th Feb 2019

That one puzzles me. It says the statement was provided by a particular person (I won't give their name to prevent this post being deleted). But that person is not listed at either company. So did he have the authority to wipe the charge?

Also it happened AFTER the company went into administration. Very odd.

jimjames

Reaper wrote: »

That one puzzles me. It says the statement was provided by a particular person (I won't give their name to prevent this post being deleted). But that person is not listed at either company. So did he have the authority to wipe the charge?

Also it happened AFTER the company went into administration. Very odd.

Exactly,it says he is borrower but he isn't a director of that company.

I would expect all transactions needing administrators involvement after Dec 2018 when FCA stopped any actions relating to assets. For those that want to see the name which is likely to be familiar to those following LCF you can view here

masonic

jimjames wrote: »

There has been another unofficial update from the administrators.

https://damn-lies-and-statistics.blogspot.com/2019/03/lcf-administrator-update-1st-march-2019.html

More questions raised again.

The first question raised, before even starting to read this latest update is why are the Joint Administrators treating some bondholders preferentially? Why haven't all bondholders been provided with this information at the same time, either by posting an FAQ online or by email. This casual manner of leaking this information via certain privileged individual creditors with the intention of having them circulate their interpretation of what was discussed is deeply unprofessional and if I were a bondholder I'd be seriously considering making a complaint about this practice.

Why are the borrowers not paying any interest? How did LCF intend to pay bondholders if they're not getting any money?

I don't think this has actually been stated unless I missed it? We know at least one borrower has an obligation to pay monthly interest. Presumably the others do as well. Clearly this cannot be distributed as interest to bondholders because it forms part of the assets of LCF and must first be used to fund the administrator's fees and second to settle creditor claims for capital repayments.

Borrowers agreed to pay the 25% agency fee. Why would they do that on top of their loans?

This is what I suspected all along, so it is useful to have it confirmed. It is fairly commonplace to have fees of around 5-10% for such borrowing, so 25% is quite high, and rolling up the fee into the amount borrowed is a rather unscrupulous practice, but one for which there is quite a bit of precedent.

Let's hope those borrowers entering into regulated credit agreements with LCF don't try to challenge these agreements because I am unsure whether such a substantial charge structured in such a manner would be legally enforceable.

jimjames wrote: »

According to the update from the administrators no loans have been repaid or are expected to be repaid imminently.

This doesn't tally with the Companies House record. According to that there was a loan from LCF that had the charge cleared on 15th Feb 2019

There was also a rather large 3 year loan taken out in March 2016, which would become payable this month according to the accounts of one company. It is possible it could have been renewed, perhaps for another 25% fee rolled up.

How can a charge be cleared when LCF have apparently not received any money from the company? This company is also significantly overdue filing accounts and only accounts from 2015 are available, long before LCF lent so much money

Most likely a new charge has been registered in the current name and type of the company (the name was changed twice from Global Resort Property PLC to London Energy Holdings PLC to London Power Management Limited and the company was re-registered from Public Limited Company to private).

billyolly

Good point,the bond holders Facebook pages have someone who claims to talk with the admistrators.He then post how he interpreted the conversation,not every bond holder is on Facebook and should be entitled to be kept abreast of developments.Until the 5 bond holders have been chosen to sit with the creditors all information should come via the admistrators.