Crowdstacker is still determined to secure a full repayment for investors whose funds have been caught up in the collapse of Amicus Finance.
Peer-to-peer investors lent £15.3m to Amicus Finance on the Crowdstacker platform between 2015 and 2017 but the company fell into administration in 2019.
Companies House documents show that £4.1m was owed to Crowdstacker investors when Amicus fell into administration and the platform’s chief executive Karteek Patel (pictured) said at the time that that the investors would have their capital and interest back by the end of the year.
However, this has been caught up in legal proceedings, the latest of which involves a proposal by Amicus administrator Begbies Traynor to follow a new restructuring plan that would rescue the company as “a going concern” rather than letting it go into liquidation or be dissolved, as was previously agreed.
“During the administration of Amicus, Crowdstacker was assured its lenders were predicted to receive a full repayment of their investment plus interest accrued over the term of the loan as well as the period of delay owing to the administration,” Patel said.
“Due to the issues, concerns have been raised recently by the administrators and have led to the restructuring plan.
“Crowdstacker continues to pursue a full return for lenders. Ongoing negotiations and court proceedings preclude us commenting further at this time.”
It comes as a high court judge this week backed allowing Crowdstacker to be treated as a separate voice to another secured creditor HGTL Securitisation Company, so it could more easily act on behalf of its investors.
Further hearings are being held this week on how to manage the administration.