As described in our SEC-qualified Regulation A Offering Circular, Worthy Lending III, LLC, a wholly-owned subsidiary of Worthy Community Bonds, Inc., is the entity that lent the proceeds of the sale of our Worthy Community bonds in 2020 and 2021 to growing American businesses.
Unfortunately a number of domestic and global economic factors, including the pandemic and supply chain issues, made it impossible for some of our business borrowers to meet their repayment obligations to Worthy Lending III. Consequently, due to the current illiquidity of its loan portfolio, we must delay the redemption of our outstanding Worthy Community Bonds (but they will continue to accrue the 7% interest) until the liquidity in the Worthy Lending III portfolio allows for redemptions. These redemptions will be automatic based on the order of redemption request dates.
Please know we have commenced formal litigation claims against delinquent borrowers and related entities including a number of domestic and foreign proceedings. We have recently won a Summary Judgement against a foreign entity related to our largest borrower, the collection of which Judgement would provide a significant portion of the funds necessary to reinstate redemptions.
Our collection process is ongoing and we will automatically redeem outstanding Worthy Community Bonds in order of request for redemptions as we collect on our outstanding loans.
To the extent that our outstanding loan collection efforts do not provide sufficient liquidity to redeem all outstanding Worthy Community Bonds in a reasonable timeframe, our parent company is actively pursuing alternative financing strategies to provide capital as a contribution to Worthy Community Bonds with the intention to cover the redemption of all outstanding bonds.
Thank you for your support and patience,
Team Worthy