After lowering the price and loosing the interest of several potential buyers, the bankrupt company has finally managed to sell its P2P lending platform.
Last year the peer-to-peer lending company Trustbuddy filed for bankruptcy (article in Swedish). The liquidator, Lars-Henrik Andersson, has since tried to scrape together what is left of the companys assets. One of the largest parts is the lending platform.
The platform was originally valued at $1.2 million (10 million SEK). After being unable to find a buyer the liquidator had to lower the price. After a number of disappointing negotiations the platform has finally been sold. Neither the buyer nor the sum has been disclosed, but the price was lower than the original $1.2 million.
“We are happy with the deal considering the circumstances. It is often the case with bankruptcies that the assets aren’t worth as much as expected”, Lars-Henrik Andersson says.
According to Mr. Andersson, the platform was hard to sell in part because of the potential buyers’ concerns regarding documentation and the challenges of further development.
Another issue was the platform’s technical problems. When borrowed money was paid back to the lender, it would stay in Trustbuddy’s system until the loan was paid back in full. The result of the error was that the money was loaned out again instead of going back to the lender. This was also one of the main reasons behind the company’s eventual collapse, according to Lars-Henrik Andersson.