Grupeer outlines plans to resume economic activity

Grupeer has begun repaying owed taxes and has started legal action against originators not repaying loans, as it set out plans to resume activities.

The Latvia-based peer-to-peer lender had its economic activities suspended by the country’s tax authority in September. It also faced criticism and legal action 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.

An update to investors at the end of last week from Grupeer said it has “partly repaid” labour force related taxes and will resume operations once this has been updated and accepted.

It had already appointed debt collection firm Recollecta to take over management of platform repayments and revealed it is chasing €10m (£9.03m) of unpaid debt from several loan originators.

“Unfortunately, a significant number of the loan originators have been deliberately evasive, have either openly refused to pay the funds loaned to them or failed to engage in any form of communication with us,” Grupeer said.

“In some instances, we have even detected attempts to hide assets.

“Therefore, we will be seeking preliminary injunctions against these loan originators.”

The update also revealed that an investor action group represented by law firm Ellex Klavins has said it will seek a declaration of insolvency against Grupeer.

The group is unhappy with how the platform and repayments have been managed during the pandemic and is looking to recoup investor funds.

“We strongly believe that there is neither legal, nor factual basis for such action, however, it is our duty to inform the investors of such a threat,” Grupeer said.

“In case of insolvency, all collection proceedings both extra judicial and in an arbitration commenced by us will stop by operation of law.”