B&C announced last week that the Swedish peer-to-peer (P2P) lender TrustBuddy AB had suspended all activity after suspected misconduct within the company.
The Stockholm-based firm, which accepts UK lenders onto its platform, has stated that the situation has become increasingly complex and will no longer be possible for the firm to continue to operate in “any form”.
The company recruited a new management team in September which carried out an internal investigation into the activities undertaken by the former management. This discovered several breaches of regulation.
Now, the Board of Directors have concluded that the company is insolvent and has decided to file for bankruptcy.
Simon Nathanson, Chairman of the Board of TrustBuddy AB, stated that as a result of the misconduct, TrustBuddy cannot move forward with the business.
“Today’s decisive action will give all stakeholders the opportunity to receive fair treatment in a structured process,” Simon commented.
“The Board of Directors and management will continue to support the process going forward in any way we can,” Simon added.
The services of the firm will continue to be closed and the trading in the share will not be resumed.
The District Court in Stockholm has appointed Lars-Henrik Andersson of Lindahl law firm to handle the process going forward.
“My immediate focus will be to fully understand the critical questions of the business in order to find the best way to safeguard the interests of the creditors and other stakeholders,” Lars-Henrik stated.
“One action is to immediately take control over all assets of the company.
“I am looking forward to an efficient cooperation with the current board and management of TrustBuddy.”
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