Creditors of Business Loan Network, the winding-down peer-to-peer lending business formerly known as ThinCats, have supported the administrator’s proposals regarding interest payments and the ability to extend the process if needed.
BLN fell into administration in April, with Kroll named as administrator.
Companies House documents published this week show a meeting of creditors last month confirmed how the administration would work.
Creditors backed 10 proposals, which include allowing Kroll to extend the administration or put the company into liquidation if needed.
Interim payments can also be made to preferential creditors and unsecured creditors.
ThinCats exited the retail P2P lending market in December 2019 to focus on institutional funding. It started a managed run-off plan for its P2P business, for loan recovery and distribution to lenders.
In February this year, ThinCats migrated all its P2P lender communications and services to its sister brand Business Loan Network.
ESF Capital is the parent company of both firms.
A statement of affairs for BLN published by Kroll last month showed there were several lenders’ complaints lodged with the Financial Ombudsman Service (FOS) relating to loans. At the time of the administration, it had upheld eight complaints against BLN, four of which were final decisions.
BLN had insufficient cash resources to pay the £400,000 loan compensation, so its board asked ESF for financial support. BLN has confirmed to Peer2Peer Finance News it has not paid this £400,000 compensation.
ESF told BLN’s board that it was unwilling to provide any further financial support to BLN, which resulted in the company falling into administration.