Some of Viventor Loan Originators are facing difficult times due to Covid-19, other much before that. The reality is that not all payments are reaching investors as planned. How is Viventor managing this?
Viventor: Aforti Factor and Aforti Finance
Starting in August 2019, Viventor has been working with Aforti Factor and Aforti Finance to restructure payments, from which they have successfully reclaim around 50% of the outstanding debt until August 2020. However, from March it became evident that Aforti Factor was not fulfilling obligations in respect to their updated payment schedule, leading to legal proceedings to reclaim the amount outstanding at the time of their default, which was EUR 100,000.
These court actions relate only to Aforti Factor. Aforti Finance’s repayment schedule was not due until July 31st. With the same issue taking place, Viventor started legal proceedings to recover the funds.
Viventor: Atlantis Financiers
Gielen Group is the new owner of Viventor, it already owned the lending platform Atlantis Financiers, one of the Viventor loan originators that now is facing problems. Conflict of interest? Yes, definitely.
Some investors reported delayed payments from Atlantis Financiers loans, however Viventor remains evasive on the topic. If you contact support, this is the reply you get:
“From the information that we have, some of the loans of Atlantis Financiers have reached their buyback term and have been processed by Viventor. These loans are now displayed as “funds in transit”. Based on the information available to Viventor, these loans have been extended by Atlantis Financiers to their borrowers and debtors. Therefore Atlantis is not able to service the debt immediately as they are still expecting the funds to arrive from their debtors. Regardless of the fact if the loans are extended or processed, the same interest at which they were invested in will be applied and paid to investors upon repayment.”Viventor Support team
With reduced cash flow and an increased level of defaults, Mycredit has approached Viventor in order to restructure their payment schedule for their Funds in Transit and Outstanding Portfolio repayments.
Both parties have been able to come to an agreement. This is the new updated payment schedule:
Funds in Transit:
93k EUR by August 31st, 2020
100k EUR in equal parts over 5 months starting from September 30th, 2020
The rest of the outstanding amount and accrued interest must be paid by January 31st 2021
Mycredit was suspended from the primary market, although they will be allowed to trade on the secondary market until their repayment plan has been successfully executed.
Viventor: Twinero / Presto
Viventor suspended investments into loans of Twinero and Presto on both the Primary and Secondary markets in June. Since then, the situation has worsened and Viventor is negotiating a solution with both Loan Originators.
As solution, 3 options are currently being evaluated:
- Get control of just the outstanding portfolio of Twinero and Presto and collect the outstanding debts. Due to unfamiliarity with the local legislation and the operational business model of Twinero and Presto this needs to be carefully evaluated.
- Incorporate the complete Twinero and Presto companies into Gielen Group. Here we have the same considerations as with option 1 but an additional advantage would be that our shareholders would have full control and can take advantage of available operational resources for collection of outstanding debts.
- Sell the troubled loan portfolios of Twinero and Presto to a third party at a discount.
Are you ready to lose money?
In order to protect the interests of investors, Viventor has taken the decision to suspend CbC from both primary and secondary markets. This situation has arisen as a result of CbC’s failure to meet their contractual repayment obligations. Since the 6th July, no repayments from CbC have been received by Viventor, and despite numerous requests for information and offers of dialogue, the loan originator has been unresponsive.
As a result of this defaulted payment schedule and the absence of any line of communication, ViVentor have presented CbC with a pre-trial warning valid until 14th of August in which Viventor requested to repay the outstanding amount as per our Partnership Agreement. Viventor has already started actively collaborate with a Polish law firm in order to take legal actions in the absence of payments.
Viventor: Other Updates
Viventor is working to implement a process through which loan originators will periodically pay interest for part of “Funds in Transit” or extended loans. This way, investors will receive interest on a monthly or weekly basis, instead of the existing model in which interest is paid at the end of the investment period together with principal and late fees.
Viventor is now undergoing a company audit for 2019 which will be published publicly. This is an essential step to provide greater transparency to investors and loan originators.
Viventor applied for an Investment Brokerage Firm License to Latvian regulator FCMC in July.
The Viventor team is working together with the FCMC, which is reviewing the platform’s documents, as well as policies, processes and everything else that needs to be assessed before a license can be granted.
What do you think of this LOs issues?
Share in the comments section your view on how Viventor is managing this crisis. What are your expectations for the future of the platform? Will you continue to invest or reduce your exposure? It will be very interesting to learn what the future will bring for Viventor.
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