FundingSecure Limited - case update

The administrators of FundingSecure Limited have realised almost £50m from the peer-to-peer lender’s loan book since FundingSecure’s collapse in October 2019.

The Buckinghamshire-based lender entered administration after an increased number of borrowers struggled to pay back their loans. The lender was also involved in a fraud lawsuit with an art dealer who the lender claimed owed it about £3m. Edward Avery-Gee, Daniel Richardson and Jonathan Avery-Gee of CG&Co were appointed Joint Administrators.

In their latest progress report, the Joint Administrators said that loan realisations to date totalled £49.45m. However, payments to investors have been suspended since May 2021 due to an ongoing legal claim by a creditor of FundingSecure in respect of an alleged ‘Quistclose trust’. The proposed claim alleges misuse of a loan which was given for a particular purpose and seeks the return of the loan funds. As of the date of the Joint Administrators’ report (May 12), proceedings had not been issued.

The Joint Administrators notified investors in late April 2023 that they were seeking to allow some payments to recommence, and that a quarterly update would be provided to them on the investor platform before 22 May.

The Joint Administrators’ latest progress report can be found HERE. They have been assisted by dozens of professional advisors, including in respect of the collection of the loan book, which are listed at Appendix B to the report.