Administators Expect Low Recovery Rate for Unsecured Creditors
- Made.com owes £186.6m to unsecured creditors
- Only expected to repay less than 2% of this amount
- 12,000 customers affected
- Facebook and Google among the unsecured creditors
- Silicon Valley Bank to recoup £3.8m loan
- Next acquires brand, domain names, and intellectual property for £3.4m
Furniture retailer Made.com, which collapsed into administration owing a total of £186.6m to unsecured creditors, is expected to repay less than 2% of this amount according to its administrators PwC. In their latest filings with Companies House, they stated that they only expect to pay out 1.6p in the pound to creditors before expenses. Among those affected are around 12,000 customers who had paid for items and are owed a collective £17.1m. Other unsecured creditors include Thurrock council (owed £658,000) and Islington council (owed £110,000). Facebook is owed £1.4m while Google is owed £1.7m. Made.com’s main lender, Silicon Valley Bank, is expected to recoup the £3.8m it loaned to the group. PwC stated: ‘We currently envisage that the secured lending will be repaid in full’. Following its collapse earlier this month, Next agreed to acquire the brand, domain names and intellectual property of the company for £3.4m.
Factuality Level: 10
Factuality Justification: The article provides accurate information about Made.com’s financial situation, including the amount owed to creditors, the expected repayment rate, and details about its administration process. It also mentions the acquisition of the brand by Next.
Noise Level: 2
Noise Justification: The article provides relevant information about Made.com’s financial situation and its collapse, including details on the amount owed to creditors and the expected repayment rates. It also mentions the acquisition of the brand by Next. The article stays on topic and supports its claims with evidence from PwC’s filings.
Financial Relevance: Yes
Financial Markets Impacted: Made.com’s collapse affects its creditors, including customers, councils, Facebook, Google, and its main lender Silicon Valley Bank.
Financial Rating Justification: The article discusses the financial situation of Made.com, its debts, and impact on various creditors and companies.
Presence Of Extreme Event: b
Nature Of Extreme Event: Financial Crash or Crisis
Impact Rating Of The Extreme Event: Severe
Extreme Rating Justification: Made.com’s collapse has a severe impact due to the significant amount of debt owed to unsecured creditors, including thousands of customers and major companies like Facebook and Google. The company’s administration also affects its employees and suppliers.
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