BLN administration draws to a close
The administration process for Business Loan Network (BLN) is drawing to a close, two years after administrators Kroll were appointed.
In a progress report to investors, Kroll confirmed that loan recoveries were expected to total £17.9m, in line with the most recent estimate.
When the administrators were appointed in April 2021, there were 163 outstanding loans to 73 borrowers, worth around £49.5m.
Kroll had initially estimated that approximately £22m would be returned to lenders, but this forecast was lowered “due to property values not reaching the anticipated levels.”
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The administrators added that lenders will continue to receive syndicate updates on active loans in which they are invested. A final administration update will be reported in two weeks time.
BLN’s status will now move from ‘administration’ to ‘creditors’ voluntary liquidation’ or CVL.
“Creditors and lenders should note that the transition to CVL will have no practical implications for dealing with the affairs of the insolvency estate as set out in this report, not the client estate in terms of its wind down to include the collection and distribution of client assets,” said Geoffrey Bouchier, joint administrator.
“The joint liquidators will continue to provide progress reports to creditors in substantially similar form to this report during CVL, albeit on an annual basis.”
The total cost of the administration process was capped at £1,532,880. To date, just over £1m has been drawn down by the administrators.
BLN was formerly known as ThinCats, which exited the retail peer-to-peer lending market in December 2019 to focus on institutional funding. It fell into administration in April 2021 following several complaints that it could not afford to pay out.
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