Crowdstacker investors in the dark about Amicus recovery
Investors in one of Crowdstacker’s largest loans that subsequently collapsed are waiting to see how much of the remaining funds they will get back after a landmark legal ruling.
The loan was made to property finance specialist Amicus Finance and attracted £15.3m from the peer-to-peer lending platform’s investors between 2015 and 2017.
However, Amicus collapsed in 2018 and Begbies Traynor was appointed as administrator. An update in February 2019 showed £4.1m was still owed to Crowdstacker investors.
The document said that “based on current information it is anticipated that Crowdstacker will be repaid in full” and the platform’s chief executive Karteek Patel told Peer2Peer Finance News at the time that capital and interest would be returned by the end of the year.
But Brexit and the coronavirus pandemic delayed attempts to recover funds.
In June 2021, Begbies Traynor proposed 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.
Under the new plan, Crowdstacker would receive £75,000 plus a share of £2.2m as a secured creditor.
Crowdstacker opposed the move and called for the court to separate its claim from another secured creditor to ensure it could represent investors.
The restructuring and Crowdstacker’s proposals were separately backed by the High Court in London last month.
Crowdstacker declined to comment on whether it still expects to repay the £4.1m to investors.