Is Worthy Bonds Having Liquidity Problems?
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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,
Team Worthy
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.
5 comments for Is Worthy Bonds Having Liquidity Problems?
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I have 5 figures invested with them. I am trying to team up with folks to try to go after them to get my money back. If you have similarly heard from others, I would appreciate if you could forward my email REDACTED for them to reach out to me.
Thanks, B
Sorry, I haven’t heard anything. I hope you get your five figures (that’s, what, at least ten grand?). And if not, I hope you do okay without it.
They were never FDIC insured, so I was always leery putting any money into it - which is why I only put the hundred or so.
They have been claiming over a year now that they have repaid millions but they provide no evidence. I have asked. I will be blunt. I invested 15k and now with interest it claims to be worth over $18k. Just this week I received a reply form support that indicated to me they will more than likely file to default completely on this. I doubt anyone will ever get their money back from this one. Yet they make bold claims online to the current products. Makes no sense to me how this can keep going on.
This is sickening. Sure we know its not fdic however their claims of being able to sale loan borrowers collateral to pay us investors back is a bold face lie. This has been going on for a year but yet they are offering and selling other investments like their community, property loans etc. However those like me that invested in the beginning into worthy peer capital have yet to see a return on our capital. I’ve gotten money back from the other offerings that came after peer capital but I can’t withdraw what I have left which is over 5k. I’ll never invest in them again.
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https://www.sec.gov/Archives/edgar/data/1699834/000155335017001299/wpc_ex3z2.htTh
This is a copy of the agreement we all consented to when we purchased Worthy Peer Capital Bonds. Note his discouraging paragraph: (b) INVESTMENT IN THE BONDS IS HIGHLY RISKY AND YOU MAY LOSE ALL YOUR INVESTMENT. THESE ARE SPECULATIVE SECURITIES. YOU SHOULD PURCHASE THESE SECURITIES ONLY IF YOU CAN AFFORD A COMPLETE LOSS OF YOUR INVESTMENT. BEFORE PURCHASING A BOND, YOU SHOULD REVIEW THE RISK DISCLOSURES AND OTHER TERMS OF THE SECURITIES OFFERING AVAILABLE IN THE WORTHY FORM 1-A OFFERING STATEMENT ON THE SEC’S EDGAR FILINGS DATABASE AT HTTP://WWW.SEC.GOV.
It appears we most likely will lose most if not all of what we invested in Peer Capital I and II. Sad, indeed!
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