London Capital and Finance

Botheredin

New article up on the Standard dealing with today's debacle but cannot post link

eskbanker

Botheredin wrote: »

New article up on the Standard dealing with today's debacle but cannot post link

https://www.standard.co.uk/business/thousands-of-investors-face-worry-as-high-risk-loan-company-london-capital-finance-collapses-a4054316.html

Botheredin

Basically the article deals with the administration application and possible motives /implications. If a more mature user can post the link please do.

Botheredin

Crossover, thanks Eskbanker

Botheredin

Have had a look at some of Blackmore's and LC&F's "assets" that supposedly back the bonds. The majority of them appear to have charges on them...

AnotherJoe

I think there are clearly two scandals going on here. One is the behaviour of all companies and infdividuala involved, the second is the pathetic and far too late intervention by the financial and advertising authorities who should at the least have shut down the wholly misleading ads literally years ago.

jimjames

Jelli wrote: »

I wonder what the exist plan was for the top people behind this, because how can money be used in jail? I hope that's not a stupid question.

I suspect that the people involved have done things in such a way that it isn't overtly illegal. Making high risk loans to a new company isn't illegal even if that company then spends the money on other things and goes bust. The difficulty is proving fraud vs poor business decisions.

This was always a high risk product where money could be lost even if everything was above board. For example the Atlantic Petroleum loans were made when it was on the verge of administration. That's a genuine listed company but very high risk to loan to one in that situation

https://damn-lies-and-statistics.blogspot.com/2019/01/london-capital-finance-never-defaulted.html

masonic

This will at least pave the way to clarity over the situation, in particular I expect the FSCS to confirm it won't be covering losses in fairly short order, and in about 8 weeks there will be an estimate of the current financial position of the companies and any residual assets held in trust.

Within the next few days, bondholders should expect to hear from the Joint Administrators, notifying them of the appointment and requesting details of their creditor claims. As LCF has cooperated so far, it's likely they will already have contact details and information relating to the monies each bondholder lent to LCF and might therefore be able to pre-populate the claim form.

I don't see any information in the FAQ regarding whether or not LCF put in place funds and a wind-down policy. This is a requirement of FCA regulated firms, but perhaps only in relation to regulated activities. Such a living will would cover some of the administration costs.

masonic

Jelli wrote: »

I wonder what the exist plan was for the top people behind this, because how can money be used in jail? I hope that's not a stupid question.

It's unlikely those who ultimately benefited from the money committed any crimes.

jimjames

masonic wrote: »

Within the next few days, bondholders should expect to hear from the Joint Administrators, notifying them of the appointment and requesting details of their creditor claims. As LCF has cooperated so far, it's likely they will already have contact details and information relating to the monies each bondholder lent to LCF and might therefore be able to pre-populate the claim form.

It appears that some bondholders have already heard from the administrators by email so they're not losing any time contacting them

https://damn-lies-and-statistics.blogspot.com/2019/01/lcf-letter-bondholders-administrator.html