Following the update from 30 March and update from 30 April, we share news on the developments in the last month on each defaulted lending company.
Please note the data was recorded as of 27 May 2020.
AlexCredit
Since 30 April, AlexCredit has repaid € 37 791. The total amount currently recovered is € 92 937 (2.10% of outstanding investments at suspension). Currently, Alexcredit management is working towards making more repayments. In addition, we maintain a regular dialog with the management of Alexcredit and work together towards reaching a solution.
Varks
Since 30 April, Varks has repaid € 541 435. The total amount currently recovered is € 3 353 209 (12.26% of outstanding investments at suspension). Following up on the last update, having discussed the pros and cons of terminating the agreements with the local council in Armenia, so far we have concluded that there is no upside for Mintos investors in termination, however, we are still exploring this option. The creditors’ claims have been just sent to Varks without any termination of the agreements.
Ensuring borrower’s repayments as well as debt collection has been difficult due to the state of emergency and movement restrictions in Armenia, described in detail here. While last week the country had prolonged the state of emergency until mid-June, some of the restrictions were eased. The CEO of Finko Group had mentioned it in the comment to investors and will release a follow up on how exactly that impacts Varks borrowers repayments and their transfers to investors on Mintos.
IFN Extra Finance
Since 30 April, IFN Extra Finance has repaid € 157 631. The total amount currently recovered is € 208 622 (30.59% of outstanding investments at suspension). The company’s management continues to cooperate with Mintos and executes the agreed loan repurchase plan. For the loans that are not yet repurchased, IFN Extra Finance is committed to making timely and orderly principal and interest repayments before buying back full exposure on Mintos.
Peachy
Since 30 April, Peachy has made no repayments. The total amount currently recovered is € 407 473 (27.29% of outstanding investments at suspension). We are working with Peachy administrators to make sure the interests of investors on Mintos are represented. Currently, we are awaiting information regarding the next transfers of borrowers’ repayments to investors.
Monego
Since 30 April, Monego has made no repayments. The total amount currently recovered is € 2 002 448 (21.09% of outstanding investments at suspension). We are working with the liquidator in order to receive information on next transfers of repayments to investors on Mintos.
IuteCredit Kosovo
Since 30 April, IuteCredit Kosovo has repaid € 247 759. The total amount currently recovered is € 3 221 476 (92.58% of outstanding investments at suspension). We are working with the liquidator in order to receive information on next transfers of repayments to investors on Mintos.
Metrokredit
Since 30 April, Metrokredit has repaid € 746 008. The total amount transferred is € 5 984 068 (76.39% of outstanding investments at suspension). Along with the wind-down, Metrokredit is no longer issuing new loans but continues to service its existing portfolio and transferring borrower’s repayments to investors on Mintos.
Rapido Finance
Rapido still has not made any payments to Mintos investors. Mintos has engaged law firm ECIJA in Spain to assist with the funds recovery from Rapido. ECIJA has been informed within the insolvency process of the decision by the administrator to sell the production unit of Rapido, and there will be certain proceeds of the sale gains received by Rapido. We expect that the money received shall be directed towards satisfaction of the creditors’ claims.
Aforti
Mintos has initiated and continues legal action against Aforti Finance and Aforti Holding as its guarantor in order to protect investors’ interests. The agreements with Aforti have been terminated and Mintos has requested that all the claims that investors had invested are repurchased by Aforti. On April 30, 2020, Mintos sent to Aforti the final net settlement which became due and payable on the 5th business day after it was deemed to be received by Aforti. Aforti has acknowledged the receipt of the notice and the final net settlement and is aware of the obligation to pay the repurchase price in full for all the claims. In the meantime, Aforti has made minor payments of € 38 000 which we have been directed to cover the negative settlement due to investors – initially covered by Mintos last year.
Eurocent
Since our last update on 30 April, Eurocent has made no repayments. The total amount recovered is € 184 102 (50.85% of outstanding investments at suspension). We are still waiting for the update from the Polish court about the creditor list and the status of the insolvency proceedings. We are aware of the Covid-19 pandemic causing interruptions in any court proceedings in Poland and elsewhere.
