FundingSecure’s administrator has received payments owed by one of the peer-to-peer lender’s former directors but is still in discussions with another executive.
A progress report from CG&Co, which has been managing the administration of the collapsed lender since October 2019, said Richard Luxmore has now made a payment towards his director’s loan account of £87,794.02.
His directorship ended in 2018.
Nigel Hackett, who is still listed as a director, had made an offer of settlement for what he owes but CG&CO said this was rejected and the matter is ongoing.
No counteroffer has been made since the rejection of Hackett’s original attempt, CG&Co said.
The report said £3.9m of loans had been recovered between 23 October 2021 and 22 April 2022, taking the total to £40m.
The administrator said 68 loans remain in default worth £33.4m.
They were described as the “most problematic” so no timeframe could be given for their recovery.
CG&Co said it is still liaising with its creditors committee and the Financial Conduct Authority over a claim that has halted investor payments since last year.
A creditor has made a claim relating to money in the client account under a legal term called a ‘Quistclose trust’.
Under this term, a creditor can lend money to a debtor, which was FundingSecure in this case, for a particular purpose.
The money cannot be spent for any other purpose and will have to be returned if it is misused.
This has meant the administrator has suspended all payments until the issue is resolved.
The administration is ongoing and is due to run until 22 October 2023.