Collateral court hearing postponed to June
The hearing on establishing a framework to administer interim investor payments to collateral investors has been postponed until June 13.
On March 30, the administrator of peer-to-peer lending platform BDO said it had sought court permission to put the framework in place, including a time limit for appeals. The administrator filed the petition with the High Court of Business and Property Court on March 22 and the initial hearing was set for May 17.
However, the hearing has been rescheduled for June 13, according to a new update this month on BDO’s website.
In a letter to the High Court of Justice, lawyers for BDO, Stevens & Bolton, said they were asking for a longer list due to the volume of documents filed in support of them and the complexity of the instructions they seek .
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“The claimants are of the view that a longer list will be required for the substantive hearing of the application and that it will not be possible to deal with this during the 30-minute list which was allotted on May 17,” they said in the letter.
“This is largely due to the volume of documents filed in support of the application (over 400 pages) and the complexity of the specific instructions sought from the court in relation to this matter.
“The petitioners therefore respectfully request that the court cancel the hearing and re-schedule the substantive hearing of the claim for two hours as soon as possible thereafter.”
BDO is proposing a framework for administering distributions to investors, including how claims will be adjudicated and a plan for how it will handle any appeals from investors regarding its assessment of claims.
It comes after the administrator spoke with a creditors’ representative about the possibility of making interim distributions to investors from the client’s money account and loan accounts, and said he could not confirm yet. the value of the final payments as it must realize the remaining assets of the collapsed platform and confirm the final liquidation costs.