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.
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.
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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