Current situation with Eurocent



Here is another update on the situation with Eurocent.

As the compulsory administrator was appointed to Eurocent, all commercial decisions now require his approval. Because of this, regular settlements with Mintos were stopped by Eurocent in December 2017. Meanwhile, the District Court of Krakow has not yet reached a decision whether Eurocent can commence the formal restructuring process.

The management of Mintos continues to be in close contact with the administrator of Eurocent about the company’s situation and possible future developments. Currently, Mintos is in the process of evaluating all options to retrieve the outstanding amount owed to investors on Mintos.

You can read the previous update on Eurocent here.

As we have news on the situation, we will keep you updated.


  • Robert Campion

    In the FAQ on Mintos Website

    “What happens if a loan originator goes out of business?

    You guys say…

    “In the unlikely event that a loan originator goes out of business, we have put in place arrangements to ensure that investors continue to receive payments on the loans in which they have invested through the Mintos marketplace.

    When you invest in a loan, you are buying claim rights against the borrower based on an assignment agreement. Borrowers make payments on their loans to the respective loan originator, and in turn, the loan originator and Mintos distribute payments to investors. In the event that a loan originator fails or becomes insolvent, assignment agreements would remain in place and be unaffected.

    As per the assignment agreement and cooperation agreement with Mintos, in the event of insolvency of the loan originator, Mintos as a proxy of the assignee, would take over the management of the claim from the loan originator and recall authorization of the assignee to the loan originator. After having taken over the management of the claim from the loan originator, Mintos would be entitled to transfer the management of the claim to any third party at Mintos’s discretion. This means that Mintos as a proxy of the assignee would inform the borrower on the assignment and direct continued payments to Mintos or any third party at Mintos discretion.”


    So in practice what you have said above is not quite true… Mintos have NOT taken over the management of the loans. You are sitting on your hands until the Eurocent Liquidator tells you what you can do…and he will presumably also tell you how much of their own money, the Mintos investors are going to get back.

    Incidently, what is happening to the payments coming in from the borrowers…at present ?



    • Hi Robert,

      Thank you for your comment. Information in our FAQ is correct.

      That is also what we say in our blog post. Currently we are in process of evaluating best possible way to do it for our investors.

      • Robert Campion

        Thanks for the reply.

        I appreciate that you need to review the court findings and consult with the liquidator …. but it all appears to be far less straight forward than the scenario mentioned in the FAQ….. which brings me to my next question, what is happening to the payments coming in from the borrowers…at present ?

        • Timo Witte

          I think you can´t expect something like this to happen in a short time period, such proccedings could take years, as there are so many parties involved and you have to meet regulation guidelines regarding fair distribution of funds to all creditors..

          Would be bad if a company in financial crisis could just move the remaining funds to just one single entity before other entities have access to the the funds..

          Their is also a discrepancy between having the right to do something and actually performing it in reality.. Doing that action in a defined short timeframe if not all parties agree is impossible IMHO.

          Making a profit is always bundled with some risks, there is no company or country in the world which can give you a 100% risk free investment.

          • Paride Di Somma

            There is a huge difference between “we have put in place arrangements” (past) and “Mintos is in the process of evaluating…” (present/future). That phrase is actually misleading!

          • Timo Witte

            Yeah, they probably have contracts in place with Eurocent hence the “we have put in place arrangements”, however Eurocent is unable to fulfill this contracts as they are not allowed to by law..

            Otherwise someone could put into place such contracts to avoid any creditor getting hold of any funds owed..

        • Payments are in Eurocent accounts. We are working to process them to Mintos.

    • YFL

      I think what Robert is saying is correct. The understanding implied by the FAQ is that once you buy the loan from the originator you then have a direct claim against the borrower which should have nothing to do with the loan originators business. If there is a buyback guarantee by the loan originator it implies a double “safety net” because if the borrower cannot pay his/her obligations, the loan originator will buy it back. If the loan originator defaults, the buyback guarantee is in jeopardy but you should expect to still get all payments on time and fully in the case that the borrower makes those payment no matter what happens to the loan originator.

      I think the key thing here is that it is obvious that this separation of claims of the investor against the borrower and the loan originator is not quite as easy in practice as stated in the FAQ. The main reason for this in my opinion is that all the borrower’s payments still flow into the loan originator’s bank accounts instead of directly into the investor’s bank account! Now, the loan originator is in banktruptcy procedures, so all the payments coming into the its bank accounts are basically frozen until the Liquidator decides who they should go to which will likely rather take years than months.
      If the borrower’s payments would directly flow into the investor’s bank account (which is separated from mintos assets’ so that it would not be frozen in case Mintos would go into bankruptcy) instead of the loan originator’s it would work as stated in the FAQs. Instead, now every investor has a claim against funds in the bankrupt loan originator’s accounts which are in total control of the liquidator. In fact, this makes clear that in practice, there is no difference whether you buy a loan where you have a claim against the loan originator pegged to the borrower’s payments or a direct claim toward the borrower because the borrower’s payments always flow into the loan originator’s bank account.

      Keep in mind, this is just my layman’s understanding which might be flawed as I have no legal background especially not in Polish bankruptcy laws.

      Kind regards

      • Hi Yannick,

        Thank you very much for your detailed feedback.

        We will take it into consideration and review our FAQ answers to make them more clear.

  • Eurocent is still in the new loan listing. Don you think it is really clever to do so ?

    • Hi Aurelius,

      Thank you for your comment.

      Eurocent doesn`t publish new loans on our marketplace.

      We don`t hide Eurocent from the lists because there are still loans from this originator on our marketplace.