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Funding Circle Holdings PLC on Tuesday responded to an article published by The Times which noted that a court is set to rule if a firm owned by an Elliott hedge fund can pursue debts. The London-based lending platform focused on small and medium enterprises said the case reported on is one summary judgment relating to two loans that defaulted in March 2020 and were sold to Azzurro Associates Ltd. In 2020, Funding Circle sold hundreds of small business owners’ personal guarantees to Azzurro, a debt buyer which is ultimately owned by New York-based investment fund Elliott Management. Personal guarantees are a business owner’s personal promise to repay outstanding company debt. The Times on Monday reported that claims that defects in Funding Circle’s documentation left Azzurro unable to pursue some small business owners over personal guarantees are to be heard by the High Court. Azzurro, according to the Times, is pursuing two directors of a business borrower which will test claims that payment under the guarantee is not due to Azzurro despite its acquisition of loans from Funding Circle. Funding Circle on Tuesday said: ‘No question has been raised as to the general enforceability of loans and personal guarantees on the Funding Circle platform. It is not disputed that the loans were validly entered into and that there is money owed under the personal guarantees.The case is going to full trial and we are confident that Azzurro will be successful.’ Funding Circle shares fell 17% to 104.00 pence each on Tuesday morning in London. Copyright 2025 Alliance News Ltd. All Rights Reserved.
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