The payday loan provider has verified its closure meaning administrators will just just take on the debts
Pay day loan giant Wonga went breasts following a ВЈ10million crisis money injection from investors neglected to afloat keep it.
Just what exactly does which means that for the debts? Will they be written down? Listed here is our guide.
Why has Wonga gone breasts?
In 2014, the company introduced a management that is new and published down ВЈ220million worth of debt owned by 330,000 clients after admitting offering loans to those who could maybe maybe maybe not manage to repay them.
Wonga had been processing lots and lots of settlement claims after it had been accused of reckless financing, focusing on susceptible clients and recharging interest that is sky-high.
In 2018 it was kept afloat thanks to a ВЈ10million emergency cash injection from shareholders august.
But Wonga stated the money injection just resulted in an influx of the latest claims and also the company happens to be struggling to deal with the need.
In a declaration, Wonga stated: “The panels of those entities have actually examined all choices concerning the future associated with the combined Group and have now concluded that it really is appropriate to position the firms into management.”