We categorise each investment with a status that highlights how an investment is performing and whether there are any important developments that you should be aware of. You will find the status of each investment listed in Investment and a summary of the status of your portfolio as a whole on your Dashboard. If you want information about a particular investment, visit the Updates section in your portfolio.
What are the different statuses?
A Pending investment is one that is currently open for further investment or has only recently closed. At this stage the investment will not be tradable on the marketplace. Once the investment offer closes the issuing company will finalise the legal requirements for the investment to proceed, at which point the status will change to On Track.
An On Track investment is one that has made all payments due to date and/or has not highlighted any upcoming significant event that requires investors’ attention.
An investment with a Material Change status is one where the company has reported a significant update to investors. The update may be positive or negative but is likely to have some form of impact for the company and your investment. You’ll likely be receiving further updates on investments in this state until the issue has been resolved.
An investment with a Late Payment status has missed one or more payments that it is due to have been paid. You should expect to have received an update from the company as to why the payment was missed. If the company catches up with the missed payment, the investment may return to On Track. If the company is unable to catch up on the late payment, it may move to In Default.
An investment In Default has not met its obligations under the terms of the Debenture Deed. This might be because the company missed a payment and has not been able to catch up, or because they have breached another term of the investment.
In this situation the company will be looking to put a proposal to investors on how they plan to resolve the issue. If it is unable to do so, or if investors do not accept the proposal, investors can choose to call an Event of Default and look to liquidate the company or in some cases step in and take over the running of the business. In these situations, Abundance acts as the Agent for investors and will update investors with the options available.
An investment with the status Restructured is one where the original terms of the investment have been changed with the agreement of investors. This would typically occur for investments that were previously in the Material Change, Late Payment, or In Default state. In these scenarios, the company may have run into difficulties and been unable to meet its obligations (or is expected to be unable to meet its obligations in the near future) and decides to put a proposal to investors to restructure the terms of the investment. To restructure the investment, the company must put a proposal to investors to vote on as part of a Special Resolution. The restructuring will only proceed if a certain threshold is reached (typically investors holding 75% of the Debentures). Abundance acts as Agent for investors and would administer the voting process in this scenario.