Wellesley CVA process nears end
Property lender Wellesley is nearing the end of its company voluntary arrangement (CVA) process, while the final instalment of its loanbook sale payments has been scheduled.
The company announced in September 2020 that it was restructuring due to liquidity issues amid the pandemic and a challenging regulatory environment.
Earlier this year, Wellesley’s investors complained that the December 2021 dividend had not been paid as planned. However, Andrew Turnbull, director and co-founder of Wellesley Finance, told Peer2Peer Finance News that all dividend payments had been scheduled.
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“We are pleased to have completed all CVA payments and we completed the preference share issuance before Christmas, therefore expect the CVA process to be formally confirmed as being completed in the near term,” Turnbull said.
“Separate from the CVA, we have made the majority of our loanbook sale payments with the final instalment expected at the end of February.”
Wellesley launched as a peer-to-peer lender in 2013 and later moved into mini-bonds. However, in 2019 the City regulator introduced a ban on the mass marketing of speculative mini-bonds. This led to Wellesley’s decision to restructure its business via a CVA.
Turnbull confirmed that following the CVA, Wellesley will focus on unregulated syndicated property lending with institutional funding.
Read more: Wellesley widens losses as it winds down the business