Is Worthy Bonds Having Liquidity Problems?
So it seems that Worthy Bonds is having liquidity problems.
On Monday (August 22, 2022) I received the following email from Worthy Bonds:
To holders of outstanding Worthy Peer Capital, Inc., bonds:
As described in our SEC qualified Regulation A Offering Circular, Worthy Lending, LLC, a wholly owed subsidiary of Worthy Peer Capital, Inc., is the loan and investment entity which invests the proceeds of the sale of our Worthy Peer Capital bonds.
Due to the current illiquidity of the Worthy Lending portfolio, we must delay the redemption of our outstanding Worthy Peer Capital bonds (continuing to accrue the 5% interest) until the liquidity in the Worthy Lending portfolio allows for redemptions which will be automatic and in order of maturity dates.
While the maturity dates of our loans were structured to match the maturity dates of our bonds, a number of domestic and global economic factors, including the pandemic and supply chain issues, have made it impossible for some of our borrowers to meet their repayment due date obligations. We continue to work with several borrowers to help them through their current business and financial situations to improve their ability to repay their loans. Some have also applied for SBA loans, the proceeds of which would be used to repay our loans. Any borrowers whose loans are past due have received our Demand for Payment, including those against whom we have either initiated collections or litigation proceedings, and one whose inventory is being liquidated for our benefit following foreclosure.
Our collection process is ongoing and we will automatically redeem outstanding Worthy Peer Capital bonds (with accrued interest) in order of maturity date as we collect on our outstanding loans and investments.
To the extent that our outstanding loan collection efforts do not provide sufficient liquidity to redeem all outstanding Worthy Peer Capital bonds in a reasonable timeframe, our parent company is in the process of preparing a financing to provide capital as a contribution to Worthy Peer Capital with the intention to cover redemption of all outstanding Worthy Peer Capital bonds.
Again, our apologies. We have paid out, on demand, over 90 million dollars to date in principal and interest payments and this is the first time we’ve ever had to pause our withdrawals.
Thank you for your support and patience,
I’m not too worried, though. I’ve only invested a net of $28.66 ($60 invested and $31.34 redeemed). Plus Worthy Bonds are (supposedly) secured by the assets of whoever received the bond money.
So it’s not like the issues going on with the crypocurrency market right now with places like Voyager and Celsius going under.
But we’ll see if I ever get my thirty bucks.