The House Crowd administration extended by another six months
The House Crowd’s (THC) administration process has been extended by six months due to the transfer of the stricken firm’s ISA Manager status.
The administrator Quantuma had its application for an extension granted by the court on 27 January, according to the latest administrators’ update.
It said: “One of the outstanding matters in the administration remains that of arranging THC’s ISA Manager status to be transferred to a third party. It is essential that this is dealt with by the joint administrators before the conclusion of the administration as the ISA Manager status of THC can only be maintained in a process of administration and would be automatically removed should the company be would up by entering into liquidation.”
The update said the joint administrators were in the process of migrating the ISA Manager status to a third party, which is expected to take no longer than six months.
As such an extension was granted and the administration is now expected to end on 24 August 2023.
Read more: The House Crowd administration set to drag on
However, Quantuma added that disbursements from the bridging and development loan book will take at least another six to 12 months to complete.
After this the process becomes a company voluntary liquidation, set to be finished by February 2025.
The latest administrators’ update, covering the period from 24 August 2022 to 23 February 2023, said the further sum of c£1,258 was paid back to investors, bringing the total sum repatriated to date to around £97,408.
The joint administrators are still trying to find out investors’ bank details to pay back a further £4,872, the update added.
Quantuma said it had identified £98,866 in THC’s pre-administration bank accounts, and so far has returned £3,872 to investors.
Read more: The House Crowd administration predicted to cost over £800,000
The administrators said they were still “in the process of constructing a suitable distribution proposal” as “the complex nature of the legal agreements relating to the loans … has led to this process becoming extremely protracted.”
They said they expected to finalise work on the proposed distribution mechanism by May 2023.
On 23 February the court set a fixed fee of £100,000 for the administrators. During the period from 24 August 2022 to 23 February 2023 the administrators billed for 477 hours at an average hourly rate of £287.61 – a total of £137,192.53.
Total fees to date stand at £872,855.34.
The House Crowd entered into administration February 2021 due to “ongoing financial issues”.
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