P2P Global Investments hit by Urica collapse

By Daniel Lanyon on Tuesday 24 July 2018

Alternative Lending

Following on from the news of the invoice financing platform’s failure yesterday, the investment trust is the latest investor to be hit.

P2P Global Investments hit by Urica collapse
Image source: https://goo.gl/AK3Q3E

The £742m P2P Global Investments portfolio is the latest investment trust to be hit by the collapse of invoice finance platform Urica, which went into liquidation last week.

Following on from what it says was a large scale fraud in its French operations, the platform closed down resulting in write offs for its equity holders including the Artemis Alpha Trust. Lindsay Whitelaw, CEO and founder of Urica, and a former partner at Artemis, declined to comment on the matter to AltFi citing ongoing legal inquiries but in an email correspondence seen by AltFi to its customers he underlined that it had suffered a large fraud at the beginning of the year that it was unable to recover from and that other financial institutions were also defrauded by the same client.

“We have been trying to secure the necessary funding we required to keep trading but that unfortunately has not been successful,” he said in the email.

P2P GI had an equity investment in URICA as well as providing a revolving credit facility, it said in a stockmarket update today. The equity investment carried a value of £5.5m with the initial investment made in October 2015.

The - now - written off equity stake represents 0.74 per cent of the trust’s last published net asset value (NAV).

The revolving credit facility is to a separate entity - URICA Europe Limited - “a Jersey vehicle established to acquire interests in English and French invoice finance receivables for which URICA Limited acts as servicer,” as P2P GI puts it.

It says the outstanding exposure stands at £24.4m but “URICA Europe Limited has not been placed into administration is not part of the URICA Limited group and its ownership of receivables is bankruptcy remote from the insolvency estate of URICA Limited.”

Also, it adds that new funding under the revolving credit facility has been restricted and that it is trying to ensure that the receivables owned by URICA Europe Limited “continue to be serviced and managed effectively.”

“The receivables are short term in nature and also benefit from credit insurance,” P2P GI said in the statement.

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