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Peer2Peer Finance News | August 21, 2019

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Crowdstacker’s Amicus investors “will be repaid in full”

Crowdstacker’s Amicus investors “will be repaid in full”
Kathryn Gaw

ADMINISTRATORS have confirmed that Crowdstacker investors will be repaid in full for a £15.3m loan which has gone into default.

The loan – the largest that has been made on the platform so far – was made to property finance specialist Amicus Finance, which raised a total of £15,368,280 from Crowdstacker investors between 2015 and 2017.

The loan had a target return of up to 5.43 per cent per annum, with interest paid annually or quarterly, and investors could choose to invest across a 12-month or an 18-month term.

However, in December 2018, Amicus went bust, and administrators Begbies Traynor were called in.

According to new documents filed at Companies House, Amicus had four secured creditors other than Crowdstacker, including investment manager Pollen Street and its subsidiary, alternative finance specialist Honeycomb.

Read more: P2P default forecasts are rising, but should investors worry?

By the 1 February 2019, a total of £4,123,715 was still owed to Crowdstacker investors.

The administrators stated that “based on current information it is anticipated that Crowdstacker will be repaid in full.”

Crowdstacker’s chief executive Karteek Patel told Peer2Peer Finance News that the investors who loaned money to Amicus via the peer-to-peer platform will have their capital and interest back by the end of this year.

“According to forecasts investors should receive their capital by the end of 2019,” said Patel.

“Importantly this is only a slight delay on when the final repayments would have been made by Amicus anyway.

Read more: Crowdstacker to develop cash and stocks and shares ISAs

“Investors will receive not only their initial capital investment, but also their interest payments, as well as interest for the period of late payment.

He added: “Notwithstanding the ideal situation of Amicus repaying the loan as originally intended, any full repayment of capital and interest within a reasonable time frame, is as a good outcome and shows the strength of P2P.”

This is the second Crowdstacker-backed loan to go into default in recent months.

Bar group BurningNight went into administration late last year, with more than £7.5m still owed to Crowdstacker investors. Begbies Traynor is also handling the BurningNight administration process.

Read more: Crowdstacker investors in disarray over recovery of £7.5m bad loan