We have completed the recovery of a defaulted loan in Lithuania. As we receive many questions about defaulted loans and our recovery process, we thought we would share some of the particulars of this latest case.
Loan project #1703 Development loan (Lithuania) (stages 1-9).
Following a by-the-book debt collection effort from our local Lithuanian team, legal partner and our central debt teams, we have achieved the full recovery of principal and partial recovery of interest.
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: 1703
Total amount Recovered: €2,75 M
Total Principal amount Recovered: €2,48 M
Recovered Loan Stages: 1 to 9.
Following the project’s default, there was interest from several different buyers and developers. Due to several factors relating to the construction and scale of the project, the buyer’s due diligence took longer than usual, but our team managed to exit the project before the auction took place, bringing about a quicker recovery for our investors.
Confidence in Asset Recoveries
We remain committed to careful and comprehensive underwriting, informed by a thorough understanding of local market dynamics. This latest recovery further underscores our confidence in our recovery processes.
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.
All our investors received their principal investment amounts, along with partial interests. The interest earned was in the 2.3% – 6.5% range depending on the stage into which our users invested.
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.