I just learned that Fenchuch was placed under “Recovery”. Why is that?
I just learned that Fenchuch was placed under “Recovery”. Why is that? Did you not agree a winding down plan with them?
Is there a new development, that we do not know about? Usualy when a company end up here it means we are one step closer to write off.
Hi DRIVE APS,
We had already included Fenchurch in our last Funds in recovery update on September 1, 2022. The reason for placing the lending company in recovery was that they are not transitioning to Notes, and we are winding down cooperation. We agreed on a repayment plan.
According to the proposed payment schedule, Fenchurch will have to transfer borrowers’ repayments as soon as they are received, at the latest by the end of August 2023. In principle, an agreement has already been reached, and we are working on formalizing necessary transactional documents. Many Fenchurch loans are taking longer than expected to settle as national lockdowns, covid restrictions, and other government regulations in the UK have significantly impacted the legal cases that Fenchurch has been funding for the past 24 months. Before Covid-19, court cases took on average 9-12 months, while they now take 12-18 months (some take even longer). As a result, some investors might see that some loans are taking longer to be repaid.
Fenchurch is currently pursuing refinancing options. If the refinancing is successful, Fenchurch would be able to buy back outstanding investments, and investors might receive their money earlier.
To ensure investors receive adequate compensation for investments that will be paid back later than initially scheduled, interest on any delayed repayments will be increased to 1.4x the base interest rate (investors will receive 13% on average).
You can follow the updates in this section: https://www.mintos.com/en/funds-in-recovery-updates/0
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