Grupeer is looking to work with lawyers representing a group of disgruntled investors who were taking legal action against the European peer-to-peer lender.
The Latvia-based peer-to-peer lender had its economic activities suspended by the country’s tax authority last 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.
Grupeer 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.
But the platform has revealed this plans have been put on hold after investors, represented by Latvian law firm, Ellex Klavins, launched separate insolvency claims against the loan originators with unpaid debts.
The law firm also represents disgruntled investors who wanted to take legal action against Grupeer to recoup funds.
“We had to put our plans on hold because of the insolvency applications made by several investors,” Grupeer said in statement on its website.
“Although the possibility of the companies concerned to be declared insolvent was small, for legal reasons we could not proceed with filing claims against the loan originators.”
Grupeer warned that loan originators could successfully argue that these disputes preclude them from repaying money to anyone.
“Therefore, we approached the investors’ Latvian lawyers, Ellex Klavins, with an offer to go against the loan originators together,” the platform added.
“Although we are still in the process of negotiating a formal ceasefire with the investors’ Latvian lawyers, the talks we have had so far have given us confidence that a solution acceptable to all parties is possible.
“We are indeed grateful to the investors and their Latvian lawyers for agreeing to start a dialogue and we intend to make the most out of this unique opportunity.”