Loan Details and Amount of Recovery
#4948 Business loan – 1.stage (Latvia) – 6,57%
#1634 Business loan – 2.stage (Latvia) – 6,78%
#2354 Business loan – 3.stage (Latvia) – 6,23%
Amount Recovered: 641 000 euros.
Yield for investors: over 6% per annum.
We are happy to share the details of our latest successful recoveries. Though the process has been complicated and unnecessarily lengthy, it has resulted in yet more recoveries. Following a two-and-a-half-year effort from our local Latvian debt collection partner, Conventus, our local team, and our central debt and legal departments, we have achieved the full recovery of principal, partial interest, and penalties for these loan projects.
Recovery Process Overview
Three loans were issued to a Latvian company in 2019 and were all defaulted on 05/02/2021. During the recovery process the Borrower used all available options to delay what should have been a standard process. This included the initiation of the court’s legal protection plan, which we believe the hostile Borrower did not as a means to reinstate the solvency and normal business activity of the company, but instead to unlawfully manipulate and delay the recovery process.
We also received several offers, from related parties of the borrower, to sell the claim at a price less than the principal. We decided instead to follow the enforcement route. Finally, in February of 2023, our debt collector managed to initiate the bankruptcy of the company and, with the cooperation of the court appointed administrator, we began the auction of the collateral. We were determined to sell the collateral and not the claim as capital loss would have been a reality for our investors if we had chosen a quick exit.
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 satisfactory results.
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. We will also improve and adjust our underwriting process based on the lessons learned from the current case. Thank you for your continued trust and support.
