Mintos recovers funds from suspended lending company
Mintos expects to pay lenders €410,864 (£347,468) this week after recovering funds from a lending company it has suspended from its platform following late payments.
In April, the European lending marketplace suspended E-Cash from its primary and secondary markets after it missed regular settlement payments to investors for seven days. E-Cash also told Mintos of its plans to wind down its business operations that month.
At the time of the suspension, €1,117,096 was outstanding in investments in loans issued by E-Cash owed to 11,516 investors.
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Mintos initiated the recovery process and after evaluating the company’s accounts, agreements and respective recovery prospects, decided an out-of-court settlement with E-Cash was the best option.
The platform said this was taking into account the very short duration of E-Cash issued loans, servicing costs of the portfolio, and the time required of different recovery options.
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Mintos said that it acted in the best interests of the investors to recover as much as possible and after negotiating with E-Cash, the recovery rate increased from less than 25 per cent on 11 May to 35 per cent.
E-Cash has estimated that the repayments and debt collection process with its borrowers is completed, which means the lending company can finalise its wind-down and transfer the negotiated amount of €410,864 to investors on Mintos.
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