Creditors for The House Crowd have decided against forming a creditor’s committee, despite the creation of an investor action group earlier this month.
During an update on the company’s dissolution, The House Crowd’s administrators Quantuma said that the company’s creditors had agreed to back the joint administrators proposals, and opted not to form a dedicated action group to manage their interests.
This follows the creation of an investor action group last week, which represents more than 300 of the platform’s lenders.
It is understood that investors were not asked for feedback on whether or not a creditor committee should be established. No creditors attended the meeting and none of the company’s creditors requested that a committee be established.
A senior member of The House Crowd Investor Steering Committee said: “It is exactly as expected. We are investors, not creditors so we had no vote.”
The House Crowd entered into administration in February, owing investors £52.7m in capital and interest. Frank Ofonagoro, Jeremy Woodside and Frank Wessely at business advisory firm Quantuma were appointed joint administrators, with the aim of winding down the company’s loan portfolio and returning investor funds.
To date, the administrators have not been able to estimate how much investor and creditor money will be recovered, or how long the administration process is expected to take.