Liquidator looking for buyer for Moola’s loan book

Moola.co.nz has gone into liquidation.

Staff of online lender Moola.co.nz were made redundant two weeks before the company was put into liquidation and the liquidators now hope to sell its loan book to pay creditors who include former workers.

Liquidators were appointed to Moola and nine other sister companies on December 5 by its shareholder after receivers were appointed to parent company NZ Fintech Holdings.

In their first report liquidators Steven Khov and Kieran Jones say they plan to undertake a sales process for the loan books for Moola and Zooma - another company in the group that was set up to do vehicle lending but had yet to launch to the market.

“It is anticipated that a sales process to market and sell the loan books for Moola and Zooma will take place with a view to either selling the debtor books along with any intellectual property and software or on a standalone basis. Parties that may hold an interest in purchasing these assets are encouraged to contact the liquidators to complete a confidentiality agreement.”

The pair said it was too early to say what recoveries could be made from the sale of those loan books and the likelihood of a distribution to creditors.

The report shows Moola has deferred income tax worth $3.84 million and funds held on trust of $967,799. It currently has $851,146 in outstanding loans most of which are short-term ($501,356).

Its intercompany receivables are valued at $5.86m with a further interest receivable of $1.78m.

Another company in the group - NZ Fintech SPVI which purchased the debt from Moola after the loan was made to a customer also had $1.5m in cash, $119,856 in funds held on trust and $7.12 million in loans to customers of which $3.775m was short term.

Employees are owed $85,881 in holiday pay but it was yet to be determined if they were still owed any wages. Secured creditors were owed $24.4m on a general security agreement to Moola and a further $5m by NZ Fintech SPVI.

Unsecured trade creditors are owed $226,493 by Moola and a further $87,597 by two other companies in the group while Inland Revenue is also listed as an unsecured creditor owed $87,400. Intercompany debts were $6.2m.

NZ Fintech Group Holdings, the ultimate owner of online lender Moola.co.nz went into receivership on December 5.

Companies Office records show Partners For Growth V LP appointed receiver Thomas Rodewald to the holding company yesterday as part of a general security agreement reached on October 30, 2019.

Partners for Growth is a US venture capital firm which lends money to companies to enable them to grow.

Christchurch-based NZ Fintech Group Holdings is owned by Edward Recordon. Recordon said the company’s situation was due to an equity deal falling over at a late stage.

“The company was expecting a large equity deal to settle in September which did not end up completing at the last minute and was the key driver for the position we are in today.”

But he said the last three years had also been very challenging.

“Seeing the rise of the unregulated BNPL [buy now pay later] players taking considerable market share; regulatory changes for short-term lenders and Covid and the economic backdrop made execution on business plans very difficult as a result.”

Recordon said there were some “fantastic assets and business plans in the pipeline”.

“We are working closely with the receiver and liquidators to achieve the best outcome possible given the circumstances. The situation will not affect current customers and loans will be serviced and managed as per usual.”