Mintos registered a claim in the case of MyBucks SA bankruptcy in Luxembourg

We are sharing news about the latest actions taken in the case of GetBucks Botswana, GetBucks Zambia, and their guarantor – Luxembourg-based company MyBucks SA.

Background

GetBucks Botswana (Cashcorp Proprietary Limited, Firstcred Limited, TU Employee Benefits Proprietary Limited) and GetBucks Zambia which refers to GETBUCKS FINANCIAL SERVICES ZAMBIA LIMITED were suspended from the Mintos Primary and Secondary Markets in April 2020. Since then, we closely followed developments and continually worked on reaching substantial agreements with the management and guarantor of these entities, as the businesses continued to deteriorate over time.

Overall, when it comes to the results of restructured repayments since April 2020, we made certain progress with GetBucks Botswana. In this case, we recovered approximately 40% of the primary exposed amount.

The principal exposure of GetBucks Botswana at the moment of suspension was €7.3 million. Over the course of the year following the suspension, a total of €2.8 million was recovered, including partial interest accrued. In July 2021, Mintos and GetBucks Botswana agreed on a monthly restructuring package that also included payment of commitments due to investors with investments in GetBucks Zambia-issued loans. GetBucks Botswana stopped making payments from August 2021 and hasn’t made any new payments until this day. We regularly reported about the status with the lending company in monthly Funds in recovery updates. The current exposure of GetBucks Botswana amounts to €5.2 million.

GetBucks Zambia was an even more complex case over this time, with the MyBucks SA group failing to close deals that could’ve helped improve its equity position and give better prospects for payments to Mintos investors. With a really strong impact of the pandemic on Zambia’s already weak economy and ongoing devaluation of the local currency, the company and the group experienced true challenges that they didn’t manage to meet.

Since the suspension, around €20 000 in borrowers’ payments have been transferred by GetBucks Zambia. The current exposure of this entity amounts to €4.3 million.

The most recent developments

Recently, MyBucks SA, the guarantor for the GetBucks entities, has entered into bankruptcy proceedings in Luxembourg, where MyBucks SA was registered. As MyBucks SA acts as guarantor for the GetBucks Botswana and GetBucks Zambia, on behalf of investors Mintos prepared a direct claim that was recently registered with the court in Luxembourg which serves as the venue for MyBucks SA bankruptcy case. The court will be making a decision about the registration of Mintos’s claim in the bankruptcy procedure in the upcoming period.

Last week, Mintos sent a notice about the exercise of the repurchase obligations to GetBucks Botswana and GetBucks Zambia. Acceleration of the outstanding obligations will strengthen the position of Mintos in the guarantor’s bankruptcy proceeding, as the accelerated amount of the debt will be added to the Mintos claim in the case of MyBucks SA bankruptcy.

For investors, this will mean that the remaining outstanding investment amounts will also be moved to “In Recovery” as we are accelerating the total exposed amount of €9.5 million (for entities in Botswana and Zambia), and stating the company’s obligation to repurchase all loans within a few business days after receiving these notices.

The status of GetBucks Botswana is changed from “suspended” to “defaulted” on the Mintos platform.

We will keep you updated about all new developments both through our regular recovery reports and via direct communication.

In the meantime, you can follow this topic on the Mintos Community.

Thank you for your patience and understanding.

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