Mintos recovers funds from suspended loan company
Mintos plans to pay lenders €410,864 (£347,468) this week after recovering funds from a lending company it suspended from its platform over late payments.
In April, the European loan market suspended E-Cash from its primary and secondary markets after missing regular settlement payments to investors for seven days. E-Cash also notified Mintos of its intention to cease trading that month.
At the time of the suspension, €1,117,096 was being invested in loans issued by E-Cash due to 11,516 investors.
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Mintos initiated the collection process and after evaluating the company’s respective accounts, agreements and collection prospects, decided that an out-of-court settlement with E-Cash was the best option.
The platform said this took into account the very short duration of loans issued by E-Cash, the costs of managing the portfolio and the time required for different recovery options.
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Mintos said it acted in the best interest of investors to recover as much as possible and after negotiating with E-Cash the recovery rate increased from less than 25% on May 11 to 35%.
E-Cash has deemed that the process of repayment and debt collection with its borrowers is complete, which means that the lending company can finalize its liquidation and transfer the negotiated amount of €410,864 to investors on Mintos.
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