THE INSOLVENCY firm initially appointed to manage the wind-down of peer-to-peer platform Collateral has fallen into administration itself.
Refresh Recovery – which was appointed as administrator for Collateral in February before being replaced by BDO following an intervention by the Financial Conduct Authority (FCA) – went into administration in July, Companies House documents show.
Live Recoveries has been appointed as administrator for Refresh Recovery.
The FCA had issued proceedings in the High Court in March as it said that Collateral had not sought its approval before appointing Wigan-based Refresh Recovery in February.
The City watchdog said it had intervened “to ensure investors are protected as the law requires”.
It comes as investors and borrowers are still waiting feedback form Collateral’s current administrator BDO on the make-up of its creditors committee.
BDO unveiled a shortlist of 13 people who had put their names forward to sit on Collateral’s creditors committee, but only between three and five were needed.
Relendex board member and founder of P2P investor 3S Capital Partners Andrei Dikouchine was among the nominees, alongside hedge fund manager Avi Rapaport and Graham Martin of alternative lending fund BondMason.
Nominees also include regular P2P investors Steve Wozniak, Rodney Buckland, Anthony Leech, Adam Bunch and Scott Gorman.
A number of current and retired accountants and insolvency practitioners are also on the list, including James Shutler, Roy Hughes and Peter Lawrence.
The list of nominees is completed by business analyst Richard Winslow and retired business development director for Civica Peter Hunt.
Collateral investors were invited to vote on who should form the committee with a deadline of 7 August, but no update has been provided since.