Customers and creditors of Wonga Group Ltd., which went into administration in late August, may struggle to receive compensation after it emerged that investment fund Kreos Capital will have first rights to any proceeds, The Times reported.
Kreos had provided the U.K. payday lender with a loan of almost €38 million two years ago. Under the terms of the loan, Kreos has the right to seize Wonga's main assets, including its Polish operations, if the loan is not repaid in full. About £10 million is outstanding from the loan.
Other creditors and customers now need to wait until Kreos is fully reimbursed to determine what the remaining assets are worth.