Loan Details and Amount of Recovery
Loan Number: #5965 Development loan – stage 1 to 14 (Latvia)
Amount Recovered: 775 801 euros
We are happy to share the details of our latest successful recoveries. Following further improvements to our internal default handling procedures, our local team in Latvia managed to find a rapid solution in this case. We have achieved the full recovery of principal, partial interest, and penalties for these loan projects, all in less than 6 months.
Recovery Process Overview
Starting in December 2021, 14 stages of development loans were issued to a Latvian company, with the last stage occurring in February, 2023. All of these stages were defaulted on 13/07/2023, following several months in which the borrower made late payments.
Our team moved quickly to initiate legal proceedings and get the collateral auctioned, while at the same time continuing negotiations with the Borrower and other financial institutions, in a bid to find an extrajudicial solution to recover the loan.
The team, in conjunction with the borrower, managed to devise a refinancing solution, which resulted in fast and full recovery of the Principal and interests for investors. This was thought greatly preferable to lengthy judicial proceedings, which could have taken several years if the borrower stopped cooperating and incurred additional legal and auction fees.
Confidence in Asset Recoveries
Another successful recovery, which went ahead despite the current illiquid times in the Latvian real estate market, exemplifies our unwavering confidence in asset recoveries. We are committed to proper underwriting and also to maintaining a thorough understanding of local market dynamics to protect our investors’ interests.
Investors’ Return
We are delighted to share that all our investors received their principal investment amounts, along with partial interest and penalty payments for the respective periods. This successful recovery is a testament to our commitment to safeguarding our investors’ funds and delivering optimal results. We will continue to apply our expertise and market knowledge to ensure successful asset recoveries even in challenging times. We will also improve and adjust our underwriting process based on the lessons learned from this case. Thank you for your continued trust and support.
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