We are happy to share the details of our latest successful recovery of a defaulted loan. Even thought the loan defaulted we were able to recover it with 3,1 months. We brought back back 100% principal repayment and 9% and 11,06% interest return respectively. Though the process may seem complicated and unneccesssarily lengthy to investors, who are understandably eager for defaults to be solved as soon as possible, it’s just business as usual for our dedicated recovery team. Here are the particulars of the recovered loans:
- Loan #0871 Development loan (Lithuania)
- Loan #5596 Business loan – 1. stage (Lithuania)
Following a by-the-book effort from our local Lithuanian team, and our central debt and legal teams, we have achieved the full recovery of principal, interest, and penalties for both these loan projects. As we receive numerous questions about defaulted loans and understand that the recovery process might be unfamiliar to many investors, we wish to take this opportunity to provide you with insights into the process.
We aim to offer you peace of mind, both for your current investments and any potential defaults in the future. We have a robust team, a well-defined plan, and a proven strategy in place to protect all your investments. Through this successful recovery, we reaffirm our commitment to safeguarding your interests and ensuring the best possible outcomes for our investors.
Loan Details and Amount of Recovery
Loan Project Number: #0871 Development loan all stages (Lithuania)
- Amount Recovered: €1,4 M
- Principal Repayment Amount: €1.27M
- Average Actual Return: 9%
- Loan Default Date: 18.04.2023
- Loan Recovery Date: 21.07.2023
Loan Number: #5596 Business loan – 1. stage (Lithuania)
- Amount Recovered: €0,102 M
- Actual Return: 11,06%
- Principal Repayment Amount: 100%
- Loan Default Date: 17.03.2023
- Loan Recovery Date: 21.07.2023
Recovery Process Overview
In the face of challenging market conditions, the borrower demonstrated their ability to perform a successful transaction of the collateral property of the project 0871. The demand for the project was high, enabling a smooth and efficient due diligence process, which typically takes at least six months. However, thanks to a deep understanding of the local real estate market and proper project underwriting in Lithuania, the due diligence was completed in 4,2 months. The borrower received sufficient funds from the sale to cover also 5596 loan project.
Confidence in Asset Recoveries
Despite the current turbulence in the market, this successful recovery exemplifies our unwavering confidence in asset recoveries financed through our platform. We are committed to proper underwriting and maintaining a thorough understanding of local market dynamics to protect our investors’ interests.
Parallel to the transaction process, our team diligently performed daily tasks related to default procedures and documentation. We remained ready to enforce the sale of the property in case the transaction did not materialise.
Investors’ Return
We are delighted to share that all our investors received their principal investment amounts, along with interest and penalty payments for the respective periods. This successful recovery is a testament to our commitment to safeguarding our investors’ funds and delivering satisfactory results.
This recent recovery demonstrates the strength of our platform and our team’s dedication to protecting investors’ interests. We will continue to apply our expertise and market knowledge to ensure successful asset recoveries even in challenging times. Thank you for your continued trust and support.
