Wowwo Q&A
This is a thread where you can ask your questions and write your Feedback about the Wowwo situation.
Dear Investors,
On December 17, 2021, we informed you that we made the decision to suspend loans originated by Wowwo from the Primary and Secondary Markets on Mintos until further notice.
The suspension is a cautionary measure to protect investor’s interests that is driven by macroeconomic changes which impact Turkish Lira exchange rate towards Euro. Given that Wowwo issues loans in Turkish Lira, but places them on Mintos in Euro, the company needs to pay the exchange rate difference from its own resources when forwarding borrower payments if Turkish Lira value drops.
As the Turkish Lira continued to depreciate rapidly, which could create a challenging environment for the company to meet its obligations towards investors on Mintos in a timely manner. We suspended Wowwo from the Primary and Secondary Markets.
Since then we shared also an update with you:
January 28, 2022
Dear Investors,
On Thursday, 27 January 2022, we had a meeting with Wowwo to further discuss possible solutions to the case of Wowwo's borrowers' repayments not being transferred to investors on Mintos. In the meantime, the funds due by Wowwo to Mintos and investors are moved to funds in recovery. The API communication system between Wowwo and Mintos was disconnected by the Turkish lending company due to currency risk that materialized for Wowwo as Lira continued to lose value against Euro.
In the most recent meeting, we exchanged information and proposals with the management of Wowwo, and we are planning to have a follow-up meeting next week when we will further discuss proposed options which will in the meantime be evaluated by both parties.
Mintos negotiations team is fully focused on coming to a resolution that will disrupt investors the least, as the case is currently classified “Stage 3”. You can find more about what this means in the article here:
https://www.mintos.com/blog/how-we-deal-with-loan-originator-issues-and-recovery-of-investor-funds/
As soon as we reach conclusions of value for investors and that can be publicly shared without disrupting our negotiation position, we won’t hesitate to update you immediately. In any case, we will share a more detailed follow-up after the upcoming meeting with Wowwo.
Please share your questions, thoughts and Feedback about Wowwo here.
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Hello Annija and Lucja have you seen my question to you guys?
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Hello Luis Filipe Da Rocha Alves, Yes, we will comment on it as soon as possible.
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Luis Filipe Da Rocha Alves We tried to reach a settlement within the arbitration process, which is confidential. At this time, we can't share more information, as Mintos is bound by the confidentiality obligation.
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Thank you for your update concerning on the failed settlement talks.
What are your next steps to further escalate the case?
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Hello Lucja it took you long just to state the information is confidential... i dont need to know that... are you messing with us? Your information adds no value at all . I dont see why the information is confidential considering that Wowwo has not accepted your proposal which was done outside of the court proceedings! You just dont want to share the bad news. Dont forget the first rule of every negotiation - who speaks and opens the flank first stays in a worst position. You guys suck - very disappointed with this unraveling and lack of transparency.
I still want to know what was the proposal refused - send it asap!
thanks
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Dear Investors,
Thank you for sharing. While your worries are understandable, we would like to emphasize that our primary goal is to protect the interests of investors on the best recovery options, which is why we cannot disclose any details at this time. We will be sure to update you with more information when it will not impact recovery.0 -
Dear Mintos team,
I fully do not understand why everything in this Wowwo case is confidential. When reading your latest update this week I was thinking "What the hell is happening here?" I understand that main juridical proceedings need to be confidential, but why are you not able to send a personal email to all investors explaining what this cryptical sentence means? "Unfortunately, due to another delay which is completely outside of our control, we most likely won't be able to provide an update within the previously communicated timeline" [from my understanding =1-2 months from Dec 2022 on].
Thank you.
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It sounds like the best way to maximize the outcome of this is to bankcrupt Wowwo.
They clearly have assets to back their liabilities and they reject all the settlement offers. What is left? Bankcruptcy.
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It is about the time to start bankcruptcy proceedings. Over 1 year now and no solution. Mintos offered them a settlement and they refused - what other options are left than BK?
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Absolutely agree on above. I can accept investor risk in terms of defaults where lender goes bankrupt or similar. But due to breach of a poorly written agreement where mintos have no legal leverage i think mintos should solely carry this risk because after all this is the service WE pay for, a safe and legally oriented middle hand
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Chances are good that the investors will recover everything (or close to everything) in BK.
Secondly, when the situation gets serious to the borrower, they will likely want to settle with Mintos. It is about the time to stop playing games here. If their business is strong, they will not let it go BK.
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If I investigated correctly, Wowwo belongs to a much bigger invest holding called Yesil Yatirim Holding AS. And this holding is listed at Istanbul Stock Market, share price x4 from 08.22 to today :-) So strategy of Mintos could be to get confirmation by Arbitration Court that Wowwo has to repay 100% amount (again stating here that this would not be a legally binding document then). But once having such a document Mintos could approach Yesil holding's banks and request them to put pressure on Yesil. Moreover Yesil would need to communicate this financial risk to investors (an Arbitration Court decision cannot be ignored) and share price might decline once communicated. So I think Mintos strategy is right – fingers crossed if this is the (confidential) strategy of Mintos.
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Gerardo Celso Guerreiro Mestre
While your questions are perfectly understandable, we would like to point out that we cannot disclose any details at this time in order to secure the interests of investors on the best recovery options. We will provide more information as soon as this does not affect the recovery process.
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When can we expect some marterial news? Wowwo is still in business today and show a solid financial statement over the last years.. They are not bankrupt and it seems that they just play around with Mintos and investors in the end. I am waiting for > 1 year and find it very frustrating that there is a lack of transparancy from Mintos in the proceedings. As investor i should receive all information available as you are representing on my behalve.. at least you should send a monthly personal update to whom are involved in this as i am currently having no news and need to search on fora to get some valuable info. Can you please tell me wat we can expect in the next weeks/months and when Mintos will file Wowwo for bankruptcy?
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Your comment is no misplaced and unrelated. Please delete it for your own peace.
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Hi,
Thank you for your comments. As we shared recently in the update, we expect to be able to share more information about the court proceedings this month.0 -
Matthias Dirk Jan Aarten and Mintos
Where do you have your information about Wowwo’s financials from? They are no longer visible under Landing Companies.
I think I read somewhere that they were a subsidiary of a larger listed (phone) company - do we know for sure?
What I am getting at is this. If Wowwo is part of a listed Corporation certain rules apply. For one they have to report important events. Default on a loan is an important event.
They have to make currency adjustment to their balance sheet items. This also include loans in foreign currency.
Assuming Mintos has done there legal homework ensuring that any and all currency risk is on Wowwo, they cannot avoid making currency adjustments. If they do not, it is fraud. Which is serious.
If they have made adjustment it would be visible on their equity.
Do we know?
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Hello.
Is there any news on this Turkish issue?0 -
we expect to be able to share more information about the court proceedings this month
I very much hope you actually do instead of breaking promises over and over again. This month has only very few workdays left.
And please do it via email to affected investors as well - your last official update was 1 year ago..
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Hello, I noted you mentioned you were going to share more news on Wowwo in February this year.
Would be nice to get an update just to get a sense you are in control of the situation.
In the worst case, an update such as "sorry we were not able to provide an update because xxxx but for the time being we can tell you yyy and we will provide you further updates by zzz" would be a serious enough statement.
Thanks!1 -
Thank you for the update regarding Wowwo case.
Now the proceedings in Turkey should be started as soon as possible and not to accept anything short of full recovery.
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Yes I received the email too.
But very disapointed....
So we have lost a year and going to restart from scratch ? How long should we expect an other trial decision ?
Mintos seems a bit naive about wowwo explaining us that wowwo try to wait the more possible.I hope you (mintos) have collected sufficient evidence now ? And will treat Wowwo as expected that's to say as a stealer!
Can you details more about the futur ?0 -
Yes it is a disappointment but it is a court decision and what can we do with it.
Their strategy is to extend the payment schedule (why they just do not make a payment plan for like 10 years - it would result also the similar situation). Long term financing at 8 % pa.
Probably the basic work has been done so the preparation to Turkish courts is easier.
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It's not a court decision !!!!
The court decide nothing ! It decide that it's should be reviewed by an other regular court!
Why don't we start by an ordinary court ?0 -
Question to Mintos: Can you share the details of the court's decision?
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lecheik As we shared in the recent update, the court decided that the case should be reviewed in a general court, and that the arbitration court should not pass a ruling in regard to the funds Wowwo owes to investors. This means the court has neither approved nor denied the claim as such. Mintos has all rights to litigate further in a regular court. While we respect the view of the arbitration court, we’re disappointed by this outcome, as it does not match our and our lawyers’ interpretation of our legal claim.
You can read more here: https://www.mintos.com/blog/update-on-wowwo/
We’ll update you as soon as we have new information.0 -
Lucja (Mintos) I expect the court gave some justification for its decision. Even if not exactly a justification, you wrote also: "We’re now reviewing the details of the decision". That's what I'm asking about. The details of the decision.
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Yes, tell us why the court decided to pass this down. Because right now it appears that you have no legal claim and you basically gave the money away
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Lucja (Mintos), could you explain, how they mathematically motivate the proposed 25% return?
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Please proivde the full statement of the court as to why it does not rule on this case.
Besides this, please provide info an how much legal costs have occured up until now and if this costs have to be covered by our assets.
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