FundingSecure’s administrator has recovered almost £50m from the collapsed peer-to-peer lender’s loan book to date, with investor payments expected to resume after two years.

In its latest update, CG&Co said that loan realisations totalled £1.97m over the period from 23 October 2022 to 22 April 2023, bringing realisations to date to £49.45m.

However, an ongoing legal claim relating to a ‘quistclose trust’ resulted in payments to investors being suspended in May 2021.

Read more: FundingSecure’s administrator recoups director’s loan account funds

A ‘quistclose trust’ means that 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.

CG&Co had received a claim from a creditor relating to monies paid into the company’s client account prior to the administration, including an assertion that the monies were subject to a ‘quistclose trust’.

“As creditors are aware, the issue in respect of the quistclose trust claim is still ongoing, payments to investors have been suspended,” CG&Co said in its latest update, filed with Companies House.

“We made an announcement on 26 April 2023 via the platform to advise investors that we were seeking to allow some payments to recommence. It is noted that this date falls just outside of the reporting period, but as this matter is of high importance to the investors, it is being included here. As at the date of this report, work is ongoing to allow these payments to recommence.”

To date, total investor withdrawals amount to £24.4m. Later in the report, the administrator said that the online platform was due to reopen from 22 May 2023, enabling investors to withdraw funds from their accounts.

However, investors on the P2P Independent Forum said they had not yet received their funds as of 26 May.

The administrator’s report also revealed that there are 36 remaining defaulted loans in FundingSecure’s loan book, amounting to £22.36m.

Administrator’s fees amounted to £883,444.70 plus VAT to date, as of the end of the latest reporting period.

CG & Co was appointed as administrator for the P2P pawnbroking platform when it collapsed in October 2019, laying bare compliance issues, as well as allegations of inappropriate allocation of investor money and loans which were not approved under the terms and conditions.