Wonga collapses into administration

Wonga, the payday loans company, has filed notice of its intention to appoint administrators.
The payday lender's filing confirmed Sky News' report on Sunday, that the company was on the brink of collapse following a deluge of customer compensation claims.
Wonga's collapse also comes weeks after Sky News reported that the loans company had received an emergency €10m cash injection from a consortium of high-profile technology investors, its chief executive warning shareholders at the time that it was in danger of becoming insolvent.One insider told Sky News that the cash call had prompted a fresh surge in compensation demands from claims management companies (CMCs).The company said in a statement:"A decision has been taken to place Wonga Group Limited, WDFC UK Limited, Wonga Worldwide Limited and WDFC Services Limited into administration."Chris Laverty, Daniel Smith and Andrew Charters of Grant Thornton UK LLP are in the process of being appointed as joint administrators.
"Wonga customers can continue to use Wonga services to manage their existing loans but the UK business will not be accepting any new loan applications. Customers can find further information on the website."Wonga's overseas businesses continue to trade and are not part of this announcement."Wonga was once one of Britain's fastest-growing consumer finance companies.
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Its fall into administration underscores Wonga's remarkable decline just five years after it harboured ambitions of pursuing a New York stock market listing.Such a move could have valued the company at more than $1bn and turned it into a British technology 'unicorn'.

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