MoneyThing administration extended for another two years
MoneyThing’s administration has been extended by another two years.
The defunct peer-to-peer lending platform’s administrator Moorfields Advisory has pushed the end date for the wind-down to 20 December 2024. The administration process was due to end on 20 December 2022.
“The nature of P2P lending, together with the size and complexity of recovering Moneything’s loan book has meant the administrators needed to extend the administration,” Andy Pear, joint administrator at Moorfields, told Peer2Peer Finance News via email.
“The majority of borrowers were in default upon Moorfields appointment as administrators, which has meant that some of the recoveries have taken longer, as ancillary action has had to be taken to recover these debts. The extension will allow Moorfields to continue to use their expertise in complex situations to ensure that all debts are pursued to the fullest extent to maximise the return to the P2P lenders of Moneything.”
This is the second time the administration has been extended.
In October 2021, the process was extended until 20 December 2022, and a spokesperson told Peer2Peer Finance News at the time that it was to “enable the administrators to continue the wind-down of the MoneyThing loan book”.
Read more: MoneyThing administration extended until 20 December
MoneyThing Capital, the P2P lending platform, and MoneyThing (Security Trustee), which acted as the platform’s security trustee on behalf of the P2P investors, entered into administration in December 2020 after the platform revealed it was unable to defend itself against future ligation from a borrower.
The latest progress report filed by administrators Moorfields in July showed that costs had risen to £872,608.50. Initially administration fees were estimated at £430,367, but this figure has since been revised.
Additional costs were incurred due to the appointment of James Money of Rollings Butt, a dedicated conflict administrator, and the court case which led to his appointment. Between 17 February 2022 and 20 June 2022, Money and his staff spent 73 hours on the wind-down.
In total, Moorfields had spent 130 hours on the MoneyThing (Security Trustee) case, costing £48,442.50.
By June 2022, almost £3.2m had been recovered from borrowers, held in a trust for investors prior to distribution.
Read more: MoneyThing administration fees near £900,000
Read more: MoneyThing administrator awaits court date while fees increase