Half of MoneyThing’s remaining peer-to-peer loan portfolio is still performing, its administrator has revealed.
MoneyThing was pushed into administration in December 2020 after revealing it could not afford to defend itself against future litigation from a borrower.
Administrator Moorfields Advisory has published proposals revealing the state of MoneyThing’s loanbook at the time of administration.
Read more: MoneyThing winds down platform
The document showed there are 50 loans outstanding to 18 borrowers, collectively owing £19.3m.
Of these, 24 loans to two borrowers are classed as performing and have outstanding capital of £1.1m.
Five loans to four borrowers worth £5.9m are non-performing, meaning they are in default.
Another 21 loans to 12 borrowers worth £12.1m are in recovery, meaning legal action is being pursued to get funds back.
A capital loss has been taken on three loans worth £261,186 since the start of the administration.
Under the structure of MoneyThing, loans are held and protected by a separate company, MoneyThing Security Trustee Limited (MTSL).
The main platform, MoneyThing Capital or MCL, acted as an agent for MTSL, and took charge of arranging loans and chasing payments.
MCL is entitled to certain administrative charges for its activities from MTSL such as monitoring and managing loans.
It is owed £646,697 as an unsecured creditor, according to the administrator’s report.
The administrator has made a provision of £129,379 to reflect the uncertainty of recovering certain loans.
MCL is owed this money from the relevant loan before MTSL can make payments to investors.
MTSL is also holding £35,897.50 on trust as a “fighting fund” to pursue claims on loans.
Interest of £52,560 is expected to be paid from the performing loans.
The document said P2P investors are not treated as creditors “for any amounts currently outstanding or for any shortfall they may suffer.”
All investor and loan accounts have been reconciled and Moorfields Advisory said it expects to generate enough income to “protect creditor interest whilst continuing to manage and maintain the value of the loan portfolio, maximising recoveries for lenders.”