Wellesley has made more than 90pc of loanbook sale payments
Wellesley has now satisfied all of its company voluntary arrangement (CVA) payments to investors and has made the vast majority of payments from its loanbook sale.
The alternative property lender announced in September 2020 that it was restructuring the company, blaming liquidity issues amid the Covid crisis and a challenging regulatory environment. Its creditors backed its proposal to enter into a CVA.
Andrew Turnbull, director and co-founder of Wellesley, told Peer2Peer Finance News that the platform has now satisfied its CVA payments in full, repaid 90.2 per cent of the total payments from its loanbook sale and together has paid 92.6 per cent of payments from its loanbook sale and CVA payments in total.
He also revealed that Wellesley is working towards the repayment of two smaller loans which will meet the final repayment and the company will distribute proceeds as soon as it can.
In an email to lenders last week, Wellesley said that the remaining loanbook payment is from delayed loans from Cloverleaf 376 that are separate to the CVA payments.
This is the final 20 per cent of investors’ December 2021 payment from Cloverleaf, following the payments of 25 per cent and 55 per cent in December last year and March 2022, respectively.
The platform said the Cloverleaf payment should be paid over the coming weeks, as loans are repaid to the firm.
Read more: Wellesley widens losses as it winds down the business
“We understand that this is disappointing news and Cloverleaf wishes to explain the circumstances that have led to the delay,” Wellesley said in an email to its investors.
“Cloverleaf was established for the sole purpose of working out the loanbook which enabled investors to receive a better outcome than would have been realised from a third-party sale.
“This has required working with the borrowers to manage or refinance their loans, and this work out activity is almost complete with 90 per cent of the total loanbook sale payments now having been paid.
“The underlying activities that enable the repayment of the remaining loans are well advanced, and the Security Trustee continues to receive clear and transparent information flow from Cloverleaf as it nears the ability to meet its final payment.
“Once the remaining loans have been repaid, Cloverleaf will make the onward payment to you which is currently forecast to be within the coming weeks. We will e-mail you once these payments have been made and are available for withdrawal from your holding account.”
Wellesley launched as a peer-to-peer lending platform in 2013 and later moved into mini-bonds before shifting to ISA-eligible listed bonds.
Following the CVA, Wellesley plans to conduct unregulated syndicated property lending with institutional funding.