planet 42
There is a rather big problem with Planet 42. Mintos unfortunately does not inform her clients about this. Only they advice not to buy Planet42 on the secondary market and delisted the rating. Last week the Estonian company filed a restructuring at the court in Talinn.
https://news.err.ee/1609427527/reorganization-might-not-deliver-planet42-investors
It would be a responsability for Mintos to inform their clients about current developments instead of leaving them in the dark. This is going to create unnecessary insecurity. Planet is a rather big player with more then 15 millions of outstanding loans.
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Oficjalny komentarz
Hello Ugo,
Thank you for posting this here.
This restructuring plan you are referring to concerns subordinated debt holders (unsecured creditors) of the Estonian entity.
Mintos (together with other secured creditors) have a direct claim towards the South African entity, which has the portfolio/cars.
Mintos has received the first payment and will be receiving them monthly going forward.
We have a much better position (Mintos investors are secured creditors vs other investors who are subordinated debt holders) therefore we currently see that full repayment will be done in 3 years.
We will comment in more detail once the restructuring agreement will be signed.
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I'm still unpleasantly surprised that Mintos is not responding at all to the possibility of 15 million in loans that can default here. Mintos announced that the notes are secured and that the problems do not affect these notes, but this is not reality. Reality check: no interest on Planet notes is paid since August 1st. So again the question raises how is Mintos dealing with the loans of which they say they are secured?
A lot of people sell their notes against a 30% loss , but nobody has any information about these notes to make a considered decision.
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In the overdue page Mintos has updated the situation a bit about the status of Planet 42. No garantees but someway Mintos is moving. Encouraging this transparency. Hope it works out. Here is the message:
9 september
We're working closely with other secured creditors and Planet42 to ensure the company is able to collect money and continue operations. We expect to receive the overdue payment of €285k within two weeks. The debt restructuring is in progress and likely will affect the timing of future payments to Mintos investors. We'll share more details as soon as we can.
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Anyone knows what's going on with all the Planet 42 loans on Mintos today? They are all finished as of today so it's not possible to offer them on the secondary market anymore. Are we going to get all the money back?
Edit: OK, I can answer myself, the loans have been moved to the Overdue payments even though they are not visible in that section yet.
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Sure mintos still have a problem with commmunication and information
Furthermore Planet42 had one of the best ranking score overall :(2 -
Hi, I did not even see it coming.
I had small amounts in overdue items and yesterday I just noticed 300,- EUR there from planet 42. Out of the blue. This wiped my whole interest earnings for the past year.
I have a small portfolio for buying on secondary market, small amounts, only companies with rating > 7.5. I guess I'll just go ahead and disable it.I am curious how this will develop.
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Yes sure,
For me the biggest problem isn't that some company failed we all know the risk.
The problem is that ranking doesn't seems to reflect that2 -
On the 18th of August Harju County Court appointed Tarmo Peterson, as a restructing advisor in the reorganization proceedings of Inclusion OÜ (Planet 42). This report should be available on the 4th of October to all investors like Mintos and brought in front of the court ultimately 18th of October
This report should contain the recommendations regarding restructuring the company and whether it is viable. Mintos has not communicated with its clients about this. On October 1, all planet 42 notes disappeared within an hour from pending to overdue to longlasting overdue , possibly default. Mintos says on this date only that it is hopeful that Planet will meet its obligations because it also has a direct claim in South Africa secured by a security on the cars.
However, it is not clear what the court will decide based on this report and whether bankruptcy will follow. If so, it will be a difficult situation. The case will basically come up for hearing on Oct. 18. Tragic that Mintos is not transpatrent about a situation that is all over the nemwspapers in Estland and does not inform its clients better in what can happen. Meanwhile, hope that some money comes back.3 -
extension of the deadline for the reorganisation plan set by the court in Talinn for 18th of november:
With the court order of 19.09.2024 in civil case no. 2-24-12421, the court extends the deadline for submitting the reorganization plan to the court in the reorganization proceedings of the company INCLUSION OÜ (registry code: 14204858). The deadline for submitting the reorganization plan to the court is 11/18/2024.
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Ugo thank you for the updates.
I did not realise the case had such big exposure in Estonia, are other firms in Estonia beside Mintos exposed to Planet (South Africa?)?0 -
@Raz: A big investor in Estonia has brought about 600 small investors into Planet 42 with unsecured loans. Does not look too good for them. Mintos loans are secured but will be problematic as well in case bankruptcy is the outcome of the restructuringplan. Standard Bank South Africa also pumped 15 million in Planet 42 this year. I can imagine they are closer to the fire in case all vehicles and other activa has to be sold.
All info is open for reading with a bunch of articles about the process in ERR, a financial Estonian newspaper (in english). Just google ERR with Planet 42 or INCLUSION OU (mothercompany of planet 42). Unfortunately Mintos is very limited with information and usually tend to look at it not from a realistic point of view but the bright side.
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hello Ugo et al. also thanks from me too for helping to shed some light on what is going on here.
this also caught me by surprise and i am also concerned about the risk score credibility.
i am considering now how best to gauge risky situations, and i am thinking that this forum and the information from other investors is very valuble.
so thanks for taking the time to post. i will be sure to pay more attention to the forums from now on.1 -
Mintos has given an update on Planet 42. Still awaiting full poayement in 3 years time. Even expecting a small amount in repayment during November. Curious about the reorganisation plan.
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Where can I read such update?
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@Luca, if you have overdue payments of Planet 42, click overdue on you general loan page and click the blue Rrestructuring , this is the last column of your Planet 42 overdue amount.
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Thank you Ugo for the information and for keeping the thread alive.
Fingers crossed eveyone.0 -
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Today the restructuring plan came to the Tallinn court: (excerpt)
The restructuring plan gave creditors two options: creditors could choose to replace their claim with a stake, or reduce their claim to the size specified in the plan, explains restructuring consultant Tarmo Peterson. “43 creditors took a stake. In total, 38.2 million euros out of approximately 45 million,” Peterson specified the amount of claims that decided in favor of the share. “22 creditors chose to reduce the claims. 14 creditors voted against the plan – their claims totaled approximately 1.3 million euros.” Peterson added that shareholders share in the potential wealth of the company, but also bear the business risk. Creditors who choose to reduce their claims will receive 5.5 percent of the principal claim, with an annual interest of 7.5 percent.If it is not possible to pay those who have chosen to reduce the claim, the reorganization plan will lapse. “Their claims must be paid to that extent within the period specified in the reorganization plan. The Reorganization Act stipulates that if this is not the case, the reorganization plan will be canceled. And then bankruptcy will probably follow,” Peterson explained. Planet 42's restructuring plan was finalized at the last minute: it has two options.According to the restructuring plan, the creditors who have chosen to participate will become the owners of the parent company Inclusion OÜ, which only owns the Mexican company. "During the restructuring procedure, a deal was made, whereby the participation of the subsidiary of the Republic of South Africa was transferred. From this, 1.8 million euros were obtained, plus another 230,000 released when the guarantees were terminated. In total, approximately two million euros," Peterson said. "We have also succeeded in terminating the guarantees with which the Estonian public limited company guaranteed the obligations of the Republic of South Africa. They were also issued for an amount of about 50 million."According to Peterson, it is difficult to estimate to what extent creditors will get their money back. According to projections, the value of the Mexican company could be almost four to five million euros in four years, Peterson said. "It is possible that this value can be increased even further. It already depends on what the new shareholders do and decide." Peterson emphasized that the reorganization plan will be approved by the court, provided that the result of the reorganization is better for the creditor than bankruptcy. "The economic content of the restructuring plan is based on the fact that it is possible to make this company sustainable through the growth of the Mexican business community. This also means that the demands of creditors can be met to the extent and at the pace that is in the past.So Marek or better CEO Martins Sulte do your homework and inform us what mintos as creditor has decided to do with our invested loans in Planet 42 and what we can expect the coming time. Saying that everything comes back in three years is for the moment and given the restructuring plan a patronizing fairy tale.
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@Elmars, thanks for your fast response. But also kind of a cheating way of communicating to put this in the top of this Planet 42 thread. And again a bit too much fairy tale. Mintos announcement to pay back some of the debt was foreseen for the first week of November, we already go to the end of the month. furthermore I believe investors should also hear what people close to the fire say about the future of Planet 42:
By voting in favor of this transaction [ result of restructuring plan], the founders [ Oja and Orgna] will divest their entire stake in Planet42 and will not receive any stake in either the South African or Mexican businesses. "We will also not receive any payments for voting on this transaction. We hope that by agreeing to leave empty-handed, we will create the conditions for Planet42 to survive and fulfill the company's founding purpose of making mobility accessible to people who have been unfairly ignored by banks, and to give investors who have supported Planet42 the opportunity to recover at least part of their investments," Oja and Orgna added in a letter to shareholders.
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It looks like I got some money back from Planet 42 today. It's still not properly updated in the app but it's like 3%.
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Yes, correct, I have the same 3,5% so far. Not clear if this is the amount that was supposed to be paid first week of November or that this is the 'higher' payment anounced as of December. Curious for the update by Mintos, (if it comes!!). At least something is moving since July which is promising.
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There is already an update. They received €0.9 million (out of 13.5), so we should receive even more money now. Currently, I have 5% so far.
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Finally a transparent and realistic update by Mintos. Thanks for that and a windfall of 6% return over November.
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I only got 0.05% back as of now🤷🏻♂️
0.16€ from 340€ dept0
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