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We have been informed by our cooperation partners at the loan originator Peachy, the trading name of a company Cash On Go Limited, of their decision to discontinue business operation in the UK.
After extensive evaluation for a profitable continuation of the business in compliance with the recently established regulatory requirements of Financial Conduct Authority (FCA), the management team of Peachy has taken a difficult decision to discontinue the operations by filing for administration process in order to manage a sustainable wind down of the company. The administrators – partners at the UK based company Smith & Williamson LLP – have been appointed yesterday.
The administrators’ primary role is to ensure the process is handled in line with the law, which entails efficient and compliant asset recovery and workout of assets to satisfy the creditors’ claims. In this case, investors on Mintos with active investments in loans issued by Peachy are creditors of Cash On Go Limited.
What happens next
As a result of Peachy management team’s timely communication with Mintos, we have already initiated the work to engage a legal counsel in the UK. The legal counsel will be representing and submitting claims on behalf of investors on Mintos. This means that at this point, investors do not have to take any steps individually.
Mintos is cooperating with the administrators. We have been informed by them that as of yesterday it is estimated that investors on Mintos are first priority creditors and their claims should be satisfied in full.
Additionally, we have been informed by Peachy’s management team that the payouts to investors on Mintos are intended to happen on a regular basis without a significant difference to the payouts while the company was fully operational. Hence the investors on Mintos are expected to continue to receive payouts without having to wait for the final stage of the wind down process.
In light of the wind down, the management team of Peachy has taken prior steps to facilitate a secure change and gradually decreased the amount of the loans originated for investors at Mintos, from EUR 6 829 112 at the beginning of this year to a current amount of EUR 1 655 173.
The administrators of the wind down process will develop a repayment schedule, subject to legal advice, of the remaining outstanding payments to investors on Mintos.
The Mintos Rating for Peachy will be changed from B to C due to the start of the wind down process. Peachy loans are no longer available on primary and secondary markets on Mintos marketplace.
Peachy will be removed from the Mintos marketplace once the wind down is complete.
About Smith & Williamson
Details of the licensing bodies for the insolvency practitioners at Smith & Williamson can be accessed at: http://www.smithandwilliamson.com/insolvency-licensing-bodies.
Smith & Williamson LLP is a member of Nexia International, a worldwide network of independent accounting companies www.nexia.com. The FCA has consented to the appointment of the said administrators.
Peachy, the trading name of a company Cash On Go Limited, is a lending company established in 2010, offering short term loans to residents of the UK. On Mintos, Peachy has issued EUR 118.3 million of loans during the period from December 2018 to February 2020. Peachy finished the year with EBITDA of EUR 1.569 million, and a revenue of EUR 355 000.
In case of any further questions, please contact our Investor Services team.