MoneyThing considers entering administration amid borrower dispute
MoneyThing is considering appointing administrators to continue the platform’s wind-down.
The peer-to-peer business lender announced last year that it would close, blaming lower investor confidence and fierce competition in the lower-risk business loans market.
It had been focusing on getting its loanbook repaid but has been in legal dispute with one borrower over whether it is owed a portion of a loan that fell into arrears.
MoneyThing said it cannot afford to defend future litigation so has issued a notice of intention to appoint administrators to protect the business.
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“Should we reach a settlement agreement with the litigating borrower within the next 10 days then, subject to continued creditor support, we will be able to continue with our original orderly wind-down plan and would not file an administration appointment,” a note on the MoneyThing website said yesterday (10 December).
“If administrators are appointed, they will assume responsibility for managing the company’s affairs.
“It is expected that the administrators continue the orderly wind-down of the remaining MoneyThing loan book, return monies to lenders and conclude the business activities.”
MoneyThing said the appointment of administrators isn’t expected to have a material impact on lenders or borrowers and the directors will provide their full support.
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