Mintos recovers funds from E-Cash

In April 2021, lending company E-Cash informed Mintos of its plans to wind down its business operations. Due to E-Cash having missed regular settlement payments to investors for 7 days and a wind-down process that hadn’t yet been evaluated, Mintos suspended the lending company from the Primary and Secondary Markets on 21 April 2021. 

At the time of the suspension, there were 11 516 investors with active investments in loans issued by E-Cash, with the average investment per investor being € 62.03. Having an overall € 1 117 096 outstanding investments due to investors at the time of suspension, Mintos initiated the process of the recovery of investors funds. 

To maximize recovered amounts for investors, Mintos evaluated multiple recovery options. Following a thorough evaluation of the company’s accounts, agreements and respective recovery prospects, we decided in favor of an out-of-court settlement with E-Cash as the best option, taking into account the very short duration of E-Cash issued loans, servicing costs of the portfolio, and the time required of different recovery options.

With these considerations in mind, Mintos acted in the best interest of the investors to recover as much as possible, as fast as possible. After an extensive negotiation process, the initial expected recovery rate, as first shared with investors on 11 May 2021 during the quarterly review on funds in recovery, was less than 25%, with the company being in stage 4 (read more about the stages and details of the recovery processes). This recovery rate was increased to 35%. 

E-Cash estimates that the repayments and debt collection process with its borrowers is completed, which means the lending company can finalize its wind-down and transfer the negotiated amount of 410 864 to investors on Mintos. Mintos has received these funds and will be distributing them next week.

About E-Cash

E-Cash was a lending company that offered short-term loans to citizens of Ukraine to cover unforeseen expenses in a timely manner. The company was licensed by the National Commission of Ukraine for the State Regulations in the Field of Financial Services Markets in November 2017.It issued its first loan in December of the same year. While E-Cash was active on Mintos, investors earned a total of € 272 715 in interest.

 

Share: