It has now been over 18 months since Just Cash Flow plc (JCF) went into administration in December 2022, and almost a year since our last report. With the administrators aiming to wind up the loan book by August 2025, companies and personal guarantors alike are feeling the pressure. Below is an update for guarantors and companies that have ongoing lending with JCF.
Update for Guarantors:
Although the administrators continue to retain and use the Just Cash Flow internal Recoveries team in some cases (and particularly for loans with smaller balances), we are unfortunately finding that more and more guarantee debts are being escalated to John Morse Solicitors. In addition, both teams are upping the ante when it comes to their parameters for doing deals and accepting payment plans.
Rather than making use of the emerging secondary market of companies willing to purchase debts like these, JCF and its administrators appear to be transferring ownership of many defaulted loan debts to a holding company, JCF 2025 Bonds Plc. We are seeing John Morse pursue county court judgements followed by charging orders over property, with a view to seeking sale orders to recover defaulted sums as quickly as possible through the legal process while avoiding bankrupting guarantors for the most part.
We have also seen the first instances of them selling their debt to a third party. The first we have seen in particular is Escher Marwick plc, a listed company that invests a range of investments, mostly asset backed. It is possible they may well consider the purchase of debt from JCF administrators secured by charges on properties, or with the ability to secure the debt in that way at a discounted price, to be such an investment.
Overall, they are clearly looking to realise as much money as possible before August 2025, and this is definitely reflected in the harder stance they are taking against PG creditors. This could still potentially allow for more amenable full and final settlements in the next 13 months; only time will tell.
If you are being pursued by JCF under an alleged guarantee, please contact us HERE
Update for Companies:
Even if your company is performing on a JCF loan, it is likely that the administrators will still seek to encourage directors to refinance or repay their debt in order to close as many accounts as possible before August 2025. We have even noticed that JCF are taking every opportunity to default loans for even minor contractual infractions and then subsequently seeking to rely solely and immediately on any guarantee(s) as a faster route to recovery.
If you are such a company and are refinancing your JCF facility, please contact us HERE