Grupeer hits back at legal claims over economic suspension

Grupeer has clashed with representatives behind legal action being planned against the lender over the meaning of the platform being under an economic suspension.

Latvia’s tax authority suspended the economic activities of Grupeer earlier this month.

It was already facing legal action from investors after it said in March that it would no longer pay interest owed to lenders due to the state of emergency declared across EU member states and limits on being able to recover debts amid the pandemic.

The claim, led Latvian law firm Ellex Klavins, is suspicious of Grupeer’s plans to get back on track and is trying to recoup at least €12m (£10.7m).

But Grupeer has now threatened Ellex Klavins with legal action after claiming it has given investors “misleading advice” that having its economic activity suspended would stop its ability to make repayments.

“The fact that the State Revenue Service of Latvian Republic has stopped the economic activity of Grupeer is related only with the process of agreeing on schedule how the company will repay labour force related taxes,” Grupeer said in a blog on its website.

“Agreeing upon such a schedule has taken more time as anticipated but after it will be finalised, the economic activity of the company will be resumed.

“Stopping the economic activity of  Grupeer does not affect factual or legal capability to continue to work to collect outstanding balances from loan originators and to ensure repayments.”

The platform said it has asked Ellex Klavins to clarify its advice to investors and has warned it may take legal action if this is not done.

The Grupeer legal action group has been asked for comment.