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Post by extremis on Jun 29, 2017 14:35:20 GMT
Well, i also think that the second scenario (i.e. the establishment of a provision fund type structure) is more consistent with investors' expectations from Buyback Guaranteed loans. But i don't think Eurocent case will be the beginning of the end of buyback guaranteed loans; it's more like a reminder that buyback guarantee does not mean risk free.
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Post by thep2pinvestor on Jun 30, 2017 4:52:41 GMT
Dear investors, we would like to point out that the answer discussed in this post referred to the interest rate defined in the assignment agreement, which would indeed remain unchanged. However, as you correctly noted, in case servicing of the loan would be taken over by Mintos (or assigned third party), full interest would be collected. In this case, investors would get compensated for losing the buyback guarantee by receiving the remainder of interest rate spread minus the cost of servicing the loan. Another scenario is that a provision fund type of structure might get established to use the interest rate spread to cover the losses of defaulted loans. I'm worried to see that Mintos still does not know how to deal with the situation between both possible scenarios. I think we should be more patient with Mintos. It seems to me that they acted with care by suspending the listing of new loans. They are just studying what is in the best interest of the investors (and their own interest also) and this cannot be decided over night. I am confident that Mintos is working day and night to solve this properly. If they don't it right, they know that this is the beginning of the end of Mintos if investors loose confidence.
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kulerucket
Member of DD Central
Posts: 336
Likes: 93
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Post by kulerucket on Jun 30, 2017 7:53:39 GMT
As far as I can tell, Eurocent has failed to make a bond payment. I'm not too familiar with how bonds work but what does that mean exactly? Is there a period in which they need to pay before the bond holders can claim their money? How long to Eurocent have before going into liquidation? For all I know, at the moment this could all be down to a temporary cash flow problem that will go away if Eurocent pay up, so it's hard to know how serious thing are. All I have found is the entry on cbonds, but that doesn't really tell me much: cbonds.com/emissions/issue/161967
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kulerucket
Member of DD Central
Posts: 336
Likes: 93
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Post by kulerucket on Jun 30, 2017 8:11:22 GMT
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Post by falconet on Jun 30, 2017 9:03:25 GMT
I actually have 1 Eurocent loan but it was only 15€ original investment and now it's 13€. It's 31-60 days late. Good handling by Mintos. I can confirm that this Eurocent loan was bought back - www.mintos.com/en/716280-0130.06.2017 Transaction ID: 162497679 - Loan 716280-01 - buyback: interest received 0.01 € 30.06.2017 Transaction ID: 162497710 - Loan 716280-01 - buyback: late payment interest received 0.00 € 30.06.2017 Transaction ID: 162497740 - Loan 716280-01 - buyback: principal received 13.22 € (IIRC it had about €1000 or just slightly under left to repay)
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Post by nesako on Jun 30, 2017 9:05:52 GMT
I actually have 1 Eurocent loan but it was only 15€ original investment and now it's 13€. It's 31-60 days late. Good handling by Mintos. I can confirm that this Eurocent loan was bought back - www.mintos.com/en/716280-0130.06.2017 Transaction ID: 162497710 - Loan 716280-01 - buyback: late payment interest received 0.00 € 30.06.2017 Transaction ID: 162497740 - Loan 716280-01 - buyback: principal received 13.22 € (IIRC it had about €1000 or just slightly under left to repay) Were you supposed to get late payment interest or not?
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Post by falconet on Jun 30, 2017 9:16:35 GMT
I can confirm that this Eurocent loan was bought back - www.mintos.com/en/716280-0130.06.2017 Transaction ID: 162497710 - Loan 716280-01 - buyback: late payment interest received 0.00 € 30.06.2017 Transaction ID: 162497740 - Loan 716280-01 - buyback: principal received 13.22 € (IIRC it had about €1000 or just slightly under left to repay) Were you supposed to get late payment interest or not? I did actually receive late interest - that €0.00 you see is really €0.0030726054660896. It's just so small because the original investment was only €17 and I only had €13 left.
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Post by wiseclerk on Jul 8, 2017 8:06:38 GMT
Appears Eurocent has filed at a court for "accelerated settlement proceedings". LinkIt remains to be seen what that means for investors
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Post by thep2pinvestor on Jul 25, 2017 4:02:18 GMT
I have now 3 Eurocent loans overdue for more than 60 days. Clearly the BB guarantee is void, which seems normal in this case. However, the interest rate still stands at 10-11 %. It means I am nor getting the 80-100 % interest that the debtors ate supposed to pay, nor am I informed about a potential provident fund being set up. My question is: who is getting the interst rate difference between 80 and 10 % ? Is it Mintos ?
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Post by nesako on Jul 25, 2017 8:29:37 GMT
I have now 3 Eurocent loans overdue for more than 60 days. Clearly the BB guarantee is void, which seems normal in this case. However, the interest rate still stands at 10-11 %. It means I am nor getting the 80-100 % interest that the debtors ate supposed to pay, nor am I informed about a potential provident fund being set up. My question is: who is getting the interst rate difference between 80 and 10 % ? Is it Mintos ? May be worth asking Mintos support for an update?
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Post by thep2pinvestor on Jul 26, 2017 3:04:11 GMT
I have now 3 Eurocent loans overdue for more than 60 days. Clearly the BB guarantee is void, which seems normal in this case. However, the interest rate still stands at 10-11 %. It means I am nor getting the 80-100 % interest that the debtors ate supposed to pay, nor am I informed about a potential provident fund being set up. My question is: who is getting the interst rate difference between 80 and 10 % ? Is it Mintos ? May be worth asking Mintos support for an update? I did. They say they will tell later. While they are still thinking about what to do, I withdraw money everyday. I have 15 % of my P2P exposure with Mintos and I don't feel comfortable with that anymore.
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p2pmaster
investment is life.
Posts: 128
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Post by p2pmaster on Jul 27, 2017 9:11:36 GMT
Update:
Here is an update on the situation with Eurocent-issued loans. After missing repayment of its corporate bonds on June 8, 2017, Eurocent has continued servicing the loans and passing on all borrower payments to investors on the Mintos marketplace. Since June 8, 2017, the outstanding investment portfolio in Eurocent loans on the Mintos marketplace has decreased by 21%.
Eurocent continues to negotiate with potential investors to resolve its financial situation. However, given the still-uncertain results of these negotiations, Eurocent has submitted an application to the court to restructure the company's debts. This is a formal procedure that prevents creditors from commencing enforcement proceedings of the unpaid corporate bonds. The decision of the court is expected by September 2017.
If the court does not allow restructuring of the debt, Eurocent will enter bankruptcy procedure. To prepare for this scenario, Mintos has made an agreement with a third party that will take over servicing Eurocent-issued loans assigned to investors on the Mintos marketplace.
Given its financial situation, Eurocent has suspended the automatic buyback of loans that are late by more than 60 days. When automatic buyback was suspended through the technical side of the platform, the shield icon visually indicating the buyback guarantee was temporarily lost as a result. However, Eurocent still remains liable for the guarantee, as indicated in the respective loan assignment agreements, and the shield icon will re-appear for Eurocent loans after the next platform update.
Eurocent-issued loans that are delinquent continue to be serviced according to standard processing, and all repayments made on the loans by borrowers are paid back to investors on the Mintos marketplace. The company plans to fulfill its buyback liability as soon as its financial situation has improved.
If the company's financial situation is not resolved and Eurocent enters bankruptcy procedure, investors with outstanding investment in delinquent loans that are not bought back will have a creditor claim against Eurocent.
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fric
Member of DD Central
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Post by fric on Jul 27, 2017 12:19:00 GMT
At least there is communication coming from Mintos regarding this. From the update it seems "normal" (normal as in - operating the way they are with their problems), they are "fine" as long as they can persuade creditors not to file claims for now and thus insolvency. They could theoretically get other investors and thus restructure. These are the risks with all these loans, especially if the world economy faces a downturn at some point, it could get much worse.
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Post by rahafoorum on Jul 27, 2017 14:35:15 GMT
p2pmaster: Did I read it correctly that while Eurocent has not declared bankruptcy, the investors keep getting only the interest rate used with buyback guarantee? However, the buyback guarantee is not working today? In other words if the actual interest rate is 80% and you get 10%, then that 70% part is in Eurocent's balance and assets in bankruptcy if things go south?
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Post by nesako on Jul 27, 2017 14:40:51 GMT
p2pmaster : Did I read it correctly that while Eurocent has not declared bankruptcy, the investors keep getting only the interest rate used with buyback guarantee? However, the buyback guarantee is not working today? In other words if the actual interest rate is 80% and you get 10%, then that 70% part is in Eurocent's balance and assets in bankruptcy if things go south? Yes, in short - if they go belly up, any defaulted loans can be just declared as a loss...
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