Marketplace lender Argon Credit has filed for Chapter 11 bankruptcy; its loan underwriting was centered around machine learning algorithms which it marketed as decisioning as a service; offered subprime loans from $2,000 to $35,000 with APRs ranging from 4.99% to 149%; in May 2015 it secured a $75 million debt funding investment from credit hedge fund, Princeton Alternative Funding; prior to that it had raised $5.05 million. Source
Argon Credit has converted its chapter 11 bankruptcy filing to a chapter 7 filing; a judge has ordered Argon Credit to transfer all proceeds and portfolio payments to its largest creditor Fund Recovery Services; the approved claim in the case is $37.3 million and Fund Recovery Services is expected to be fully paid. Source
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[Editor’s note: This is a guest post from Argon Credit. Argon Credit is a silver sponsor and will be in attendance...
Lending Times has reported numerous improprieties at Argon Credit causing further investigation; the firm filed for bankruptcy on December 16; an article from Lending Times says Argon Credit used proceeds from lending capital for personal interests; also says investments were not accurately disclosed and directed; firm is involved in bankruptcy proceeding with investor; former founder also had a criminal record. Source
The investment company will be changing their strategy to focus on secured loans which the board believes will stabilize the...