Mintos and UK-based litigation financier Fenchurch have mutually agreed to wind down cooperation due to potentially increased reputational risk for Mintos and also the lending company, resulting from the ongoing liquidation of Fenchurch’s former parent company.
According to the proposed payment schedule, Fenchurch will have to transfer borrowers’ repayments as soon as they are received, at the latest by the end of August 2023. In principal an agreement has already been reached, and we are working on formalizing necessary transactional documents. Many Fenchurch loans are taking longer than expected to settle as national lockdowns, covid restrictions, and other imposed government regulations in the UK have had a significant impact on the legal cases that Fenchurch has been funding for the past 24 months. Before Covid-19, court cases took on average 9-12 months, while they now take 12-18 months (and some take even longer). As a result, some investors might see that some loans are taking longer to be repaid.
Fenchurch is currently pursuing refinancing options. If the refinancing is successful, Fenchurch would be able to buy back outstanding investments, and investors might receive their money earlier.
To ensure investors are receiving adequate compensation for investments that will be paid back later than initially scheduled, interest on any delayed repayments will be increased to 1.4x the base interest rate (investors will receive 13% on average).