P2P lender Funding Secure enters administration
Jonathan Avery-Gee, Edward Avery-Gee and Daniel Richardson of CG & Co have been appointed administrators, and will be working closely with the Financial Conduct Authority (FCA).
Funding Secure offered loans secured against high value assets such as properties, and had a loan book worth around £80m, with around 3,500 investors.
The administrators said the firm’s difficulties “have been documented online”, with investors aware that some loans have not performed in line with expectations.
It has been caught up in a legal battle with an art dealer in Mayfair, who has been accused of selling off artworks that had been used to secure loans.
The administrators added: “The business has not been able to demonstrate to the FCA that it can continue to meet the ‘threshold conditions’ necessary to continue conducting regulated activities.
“The rationale for the appointment of the administrators is that there is a real risk that liquidation would fundamentally damage the value of the company’s assets, by adversely impacting on the recoverability of the company’s loan book, and undermine the potential return to investors and creditors.”
The administrators will now be contacting creditors and borrowers directly in a bid to assess their ability to repay their loans at the appropriate maturity dates or earlier.