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Author Topic: Prosper completes transfer to Prosper Funding LLC  (Read 8658 times)

havastat

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Prosper completes transfer to Prosper Funding LLC
« on: February 11, 2013, 05:45:26 pm »

Prosper Marketplace Inc. filed an 8-K with the SEC saying it had completed its asset transfer to Prosper Funding LLC:

http://www.sec.gov/Archives/edgar/data/1416265/000114036113005073/form8k.htm

The transfer includes not only the loans but much of Prosper's other assets, including the lending platform software and about $3 million in cash.
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Mark12547

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Re: Prosper completes transfer to Prosper Funding LLC
« Reply #1 on: February 11, 2013, 06:43:51 pm »

Lobby?
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Staneslav

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Re: Prosper completes transfer to Prosper Funding LLC
« Reply #2 on: February 11, 2013, 06:49:48 pm »

a
« Last Edit: November 24, 2017, 04:04:27 pm by Staneslav »
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Xenon481

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Re: Prosper completes transfer to Prosper Funding LLC
« Reply #3 on: February 11, 2013, 06:52:05 pm »

Lobby?

+1

It's important news.

As to whether or not it will successfully hide the transferred assets from the lawsuit or a potential bankruptcy, a judge will have to rule on that. I suspect that a judge would find this to be a fraudulent conveyance of the assets in an (openly stated) attempt to fraudulently (that part wasn't stated) hide them from the lawsuit and as such, I don't think that this will help protect any of the transferred assets, but will be successful in hiding future assets.

nonattender

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Re: Prosper completes transfer to Prosper Funding LLC
« Reply #4 on: February 11, 2013, 07:41:08 pm »

Excellent news for P2P lenders/investors.

LendingClub has had similar protections (for its institutional investors) for ~2 years;  Prosper now protects both its retail and its institutional investors.  Nice.
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ira01

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Re: Prosper completes transfer to Prosper Funding LLC
« Reply #5 on: February 11, 2013, 09:23:02 pm »

Lobby?

+1

It's important news.

As to whether or not it will successfully hide the transferred assets from the lawsuit or a potential bankruptcy, a judge will have to rule on that. I suspect that a judge would find this to be a fraudulent conveyance of the assets in an (openly stated) attempt to fraudulently (that part wasn't stated) hide them from the lawsuit and as such, I don't think that this will help protect any of the transferred assets, but will be successful in hiding future assets.

I agree with this.  This appears to me to be a classic example of trying to "hinder, delay or defraud" your creditors, which judges tend to frown upon.  Especially when you are already enmeshed in major litigation at the time.   :ninja:
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xraider

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Re: Prosper completes transfer to Prosper Funding LLC
« Reply #6 on: February 12, 2013, 07:51:37 am »

I agree with Ira.

NA, if Prosper protected its retail lenders it wouldn't be here.  I hope that the courts see this for the fraudulent conveyance that it is.  The timing, and the disclosures, won't help Prosper with this one.
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NewHorizon

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Re: Prosper completes transfer to Prosper Funding LLC
« Reply #7 on: March 13, 2013, 10:48:26 am »

Kind of an aside, here, but I noticed the addresses:

Prosper Marketplace:
Quote
111 SUTTER STREET
22ND FLOOR
SAN FRANCISCO CA 94104
415-593-5400
http://www.sec.gov/cgi-bin/browse-edgar?NOaction=getcompany&CIK=0001416265&owner=exclude&count=40&hidefilings=0


Prosper Funding:
Quote
112 SUTTER ST, FL 22
SAN FRANCISCO CA 94104
415-593-5400
http://www.sec.gov/cgi-bin/browse-edgar?NOaction=getcompany&CIK=0001542574&owner=exclude&count=40&hidefilings=0

Compare the street numbers.  Odd?
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Urbi_et_Orbi

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Re: Prosper completes transfer to Prosper Funding LLC
« Reply #8 on: March 13, 2013, 10:53:24 am »

They couldn't even get THAT right?
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NewHorizon

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Re: Prosper completes transfer to Prosper Funding LLC
« Reply #9 on: March 13, 2013, 11:04:11 am »

Using the "Look Up a Zip Code" function at https://www.usps.com/ , entering the 112 Sutter St address produces the message:
Quote
The address you provided is not recognized by the US Postal Service as an address we serve. Mail sent to this address may be returned.

I may have mis-typed something (as I ofen doo), but I checked twice.

They couldn't even get THAT right?
Or worse, they're trying to accomplish something by purposefully using an address for Prosper Funding that is nearly identical (but fictitious) to the address of Prosper Marketplace....?

ETA: Well the original S-1 has the correct address.  So I dunno.  Fat fingers at the SEC, maybe.
« Last Edit: March 13, 2013, 11:13:23 am by NewHorizon »
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Fred93

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Re: Prosper completes transfer to Prosper Funding LLC
« Reply #10 on: May 01, 2013, 11:33:11 pm »

ETA: Well the original S-1 has the correct address.  So I dunno.  Fat fingers at the SEC, maybe.

People at the SEC don't type any more.  All filing is done electronically by paralegals working for company lawyers.

havastat

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Re: Prosper completes transfer to Prosper Funding LLC
« Reply #11 on: May 02, 2013, 10:34:59 pm »

One consequence of some of the judge's rulings in the Prosper lawsuit last week is that the suit will probably take a lot longer to finish than the plaintiffs had hoped. The judge ordered a bifurcated trial, with first a trial on whether the notes are "securities" and maybe an appeal on that decision, and then the process starts over and there's more motions, discovery, and then another trial on the other issues. Years.

If the transfer to Prosper Funding LLC is valid, it's entirely possible that there will be effectively no assets by the time the whole thing reaches finality. All notes issued before the transfer (whether or not validly transfered) may have long been paid off, and the only notes left may be ones issued after Prosper Funding was set up which probably have a better claim to not being assets of Prosper Marketplace Inc., which Prosper may be able to keep the plaintiffs' lawyers from getting their hands on them if the plaintiffs win.
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yankeefan

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Re: Prosper completes transfer to Prosper Funding LLC
« Reply #12 on: May 03, 2013, 07:54:48 am »

BUt the plaintiffs may well own Prosper Marketplace, and thus whatever equity value there is in prosper funding.  (maybe that's only a sofa....)
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