Update on Eurocent

13.10.2017

mintosblog

  • Uncategorized

Here is the latest update on the situation with Eurocent. The company continues servicing the loans and passing on borrower payments to investors on the Mintos marketplace. As a result, since June 8, 2017, the outstanding investment portfolio in Eurocent loans on the Mintos marketplace has decreased in total by 43%.

After suspending automatic buyback of the delinquent loans on the Mintos marketplace in July, Eurocent made a partial buyback of the loans according to company’s financial ability in the amount of EUR 71 000. Similarly, Eurocent made gradual repayments towards the holders of the outstanding corporate bonds. As of October 6, the company had repaid a total of 35% of the overdue bonds.

However, following the appointment of a Temporary Judicial Supervisor by the court on September 29, the company had to suspend the partial fulfilment of the buyback towards investors on Mintos. This was due to the limitations imposed by the supervisor to ensure fair treatment of all creditors of Eurocent.

The main functions of the Temporary Judicial Supervisor are to:

–  verify the financial standing of the company;

–  help the court to make a decision on the reasonableness of the commencement of the debt restructuring proceedings;

–  supervise all dispositions made by the company to prevent it from conducting activities that might be perceived as detrimental to creditors.

As confirmed by the management of Eurocent, the appointment of the Temporary Judicial Supervisor will not affect the regular settlements made by the company towards the investors on the Mintos marketplace. All payments received from the borrowers of loans that have been assigned to investors on the Mintos marketplace will still be transferred on a regular basis.

Meanwhile, Eurocent continues negotiations with several potential investors. If these negotiations result in an agreement, the company’s situation would be resolved out of court and would allow Eurocent to repay its obligation towards the investors in the shortest period of time.

Short recap of what has happened

June 2017: Eurocent could not repay its corporate bonds in the amount of PLN 1.8 million (EUR 425 000), and the placement of new Eurocent loans on the Mintos marketplace was suspended. Read more >

July 2017: Still not being able to repay the full amount of the outstanding bonds, Eurocent submitted an application to the court to restructure the company’s debts. Read more >

September 2017: After evaluating the application, the court appointed a Temporary Judicial Supervisor to Eurocent. All actions of the company that exceed the scope of ordinary management must now be approved by the supervisor.

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