So following the disaster with Burning Night, Crowdstacker investors are now facing a £6.4m hole as Authentic Alehouses collapses. And AA were set up by the same team as Burning Night.
P2P lending is taking a bit of a battering. We will have to see what the administrator can achieve on this case.
AA took out 8 separate loans via Crowdstacker in October 2018 (see comment below) - so a little over 4 months ago. It now looks as though this money is at risk. We are not really sure how they managed that.
If I may correct your article, AA did not take out 8 separate loans in October 2018. They weren't actually separate loans unfortunately but we're security for the single loan by Crowdstacker. The 7 legal charges were all registered at Companies House in October 2018 around the time Burning Night was failing and going into administration. The date of the charges does not relate to the date when the individual pubs were acquired. We now await a valuation by the administrator to ascertain what money can be realised and repaid to creditors.
ReplyDeleteCrowdstacker loaned £8m+ to Burning Night pub group when the net assets of the pub group never exceeded £2m ---who else would loan 4 times net assets ?? Since Burning Night went down on 2 October 2018 , Crowdstacker have refused to discuss with lenders as to what due diligence if any they carried out .
DeleteThey then went on to the AA trainsmash .
Their web site indicates everything is rosy with these various crashes.
Crowdstacker must be held to acccount