Growth Street says 100% of balances are being returned to investors

By Oliver Smith on Tuesday 12 January 2021

Alternative Lending

Investors are due to be repaid in full as Growth Street continues its solvent wind down.

Growth Street says 100% of balances are being returned to investors
Image source: Kim Goetzke/Growth Street.

After triggering its solvent wind down during the first wave of Covid-19 last year, marketplace lender Growth Street yesterday confirmed that all its investors would receive their money back.

“Returning as much of each investor’s assigned balance, as quickly as possible, has been a core focus since we declared the Resolution Event in June of last year,” said COO Kim Goetzke.

Specifically Growth Street said investors would receive “100 per cent recovery of balances assigned on the occurrence of the Resolution Event called in June 2020”.

Growth Street’s woes began in March 2020 when it moved to limit withdrawals from its platform via a ‘liquidity event’, then started a ‘resolution event’ in June to recall its loans and finally opted for a wind-down of the existing lending business in July.

Goetzke added: “I want to thank our team for their efforts - returning 100% of assigned balances is a great source of professional pride for us. I also want to thank our investors for their patience and support whilst we navigated this process.”

Growth Street is now working on streamlining its operations to continue collecting against outstanding balances and servicing its remaining creditors.

Last year Goetzke said that the lender was exploring options: “that would enable us to build an economically viable business going forward whilst allowing us to offer a market-leading proposition for our customers.”

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