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One of the businesses that I have lent to is about to enter a Creditors’ Voluntary Liquidation procedure. What shall I do?

If you are reading this then it is likely that one of the businesses that you have lent to has given us notice that it intends to enter into a Creditors’ Voluntary Liquidation, which is an insolvent liquidation procedure.

This procedure involves the creditors of the company appointing a liquidator at a “First Meeting of the Creditors”. We intend to send an agent to this first meeting to represent your interests as an investor on this loan.

Our agent will ask challenging questions to the prospective liquidators and to any directors who are present.

Further, we usually prefer our chosen Insolvency Practitioner to be the liquidator, rather than the Insolvency Practitioner proposed by the directors. Accordingly, we have instructed our agent, on your behalf, to attempt to secure support from the other creditors at the meeting in order that he/she is appointed.

 

Some of our agent’s questions at the meeting may include:

a.    Why did this company become insolvent?

b.    What did the company know about its financial position when it took the loan(s) through Funding Circle?

c.    Did the company use the funds from Funding Circle for any purpose other than for which had been requested?

d.    Is there any relationship between the company (and its shareholders) and the proposed liquidators (or administrators)?

e.   Who is the proposed purchaser of the company’s assets?

f.    Is there any connection between the proposed purchaser of the company’s assets and the directors/shareholders of the insolvent company?

g.    How much can the lenders on the Funding Circle platform hope to receive out of the process?

 Our agents will not ask:

a.    Any questions about the assets and liabilities of any guarantors of loans facilitated through the Funding Circle platform

b.    Any questions that are long-winded or too complicated to reasonably expect a prospective liquidator to be able to answer them.

c.    Any questions that are unhelpful, obtuse, vexatious or rude.

d.    Any questions that they do not feel are appropriate or relevant.

e.    Any questions that the prospective liquidator has answered in his address to the creditors at the meeting.

 

Yours questions for the meeting

Investors that use Funding Circle are insightful and intelligent individuals.  We appreciate that you may have questions that will help our agents to ask pertinent questions at the creditors’ meeting.

If you have any such questions, please email them to: noreply.creditorsmeeting@fundingcircle.com

Please state “QUESTION – (NAME OF THE COMPANY / LOAN ID)” and insert the name of the company or loan ID in the subject matter of the email.

We will check this email account 3 working days before the date of the creditors’ meeting and shall send your questions to our agent. Any questions received less than 3 working days before the meeting will not be sent to our agents and unfortunately we are unable to be flexible with this.

Please note: we will not respond to any questions or emails that you send to this email address.

 

The report of the meeting

Our agents will provide a brief report to Funding Circle within 5 working days of the date of the creditors’ meeting, which we will only distribute on request.

If you would like to receive a copy of the report please send an email to noreply.creditorsmeeting@fundingcircle.com

Please state “REPORT – (NAME OF THE COMPANY / LOAN ID)” and insert the name of the company or loan ID in the subject matter of the email.

We will check this email account 6 working days after the date of the creditors’ meeting and shall send the report to all emails in the account that have been sent by investors on the loan. Any requests from investors received more than 6 working days after the meeting will not receive a copy of the report.

Please note: we will not respond to any questions or emails that you send to this email address.

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