FundingSecure administration delayed again
FundingSecure’s administration has been extended until 22 October 2024, in the latest obstacle for former investors in the pawnbroking peer-to-peer platform.
According to documents filed on Companies House, administrators CG&Co have won authorisation from the High Court of Justice, Business and Property Courts in Manchester to extend the administration process for at least another year.
FundingSecure went into administration in October 2019. The administration was extended in 2020 for three years, with an end date set for October 2023.
This new court-ordered extension means that the wind-down process will have taken five years to complete.
Read more: P2P administration costs rack up
In an update to investors earlier this year, CG&Co said that they had recovered almost £50m from the collapsed P2P lender’s loan book to date, with investor payments expected to resume after two years.
When it went into administration in 2019, FundingSecure’s loanbook stood at £80m, representing approximately 486 loans from around 3,500 investors.
Since then, the administration process has been delayed by a series of legal interventions. In May 2021, payments to investors were halted due to a claim from an unnamed creditor who invoked a legal term called a ‘quistclose trust’.
As of April 2023, the administrators’ fees totalled £808,353.30.
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