Tag Archives: Eurocent

Mintos loan originator Kuki.pl misses the payment of the buyback guarantee?


As promised, I return with the response received from Mintos support. It arrived promptly, the next day, and you can read it below:

“Dans (Mintos)

Oct 18, 12:36 EEST

Hi Cristian,
thank you for your message.

After checking I found that the loan you are referring to had been closed by the 16.10.2019. 
It is listed in the finished Investments as well. The amount of days the loan is late, however, will keep increasing. As of now it is 63 days late, but that doesen`t change the fact that the loan had been in accordance to the buy-back guarantee on the 16.10.2019.

I hope that cleared it up and you may have a pleasant day
Let us know if you have any other questions.

Now, given the age of the platform, the volume of transfers and the experience with them so far, I will credit them, but there are still some doubts:
– if a loan was paid on 16.10.2019, why did it appear within the platform as late on 17.10.2019 (at night !!!) as it results from the image below, and only on 18.10.2019 as ” Finished prematurely “?
– if indeed the loan was paid on 16.10.2019, it means that there is a problem of the platform with the updating and/or displaying of data, which is worrying considering that we all make investment decisions in accordance with the information displayed.
As a personal opinion, for a while I will stay away from kuki.pl.
If you have questions or can explain these differences, feel free to comment on this post.

End of update

No money

Tonight, when I checked the Mintos platform, I had the unpleasant surprise to see that there are loans on my portfolio at Mintos that are more than 60 days late, given that I only invest in loans with buyback guarantee.I checked on the platform and noticed the following loan:

Kuki.pl buyback default

Kuki.pl buyback default

I am aware that this is only a one day late loan, but after the “experience” with Eurocent and Aforti I am very attentive to everything that happens within the platform.

I sent a message to Mintos about this topic, I will update this post when I get a response from them.

However, until then, I liquidated the entire loan portfolio from kuki.pl on the secondary market. I hope this is not another case like Eurocent.

Update 3 on Eurocent loans on Mintos peer-to-peer lending marketplace

Mintos logo

Due to Eurocent’s complex property and legal situation, and its inability to obtain an investor, as of March 20, 2018, Eurocent has ceased its operations. According to the compulsory administrator of Eurocent, continued operating activity is economically unjustified and there are no real prospects for the implementation of the arrangement and restructuring of the company.

Mintos says it is their priority to protect the interest of  the investors and they are currently doing everything possible to ensure this.  Their lawyers are now reaching out to the administrator and the board of Eurocent to see how they can recover the money owed to Mintos investors as soon as possible.

You can read the previous update on Eurocent here.

Update 2 on Eurocent loans on Mintos peer-to-peer lending marketplace

As the compulsory administrator was appointed to Eurocent, all commercial decisions now require his approval. Because of this, regular settlements with Mintos were stopped by Eurocent in December 2017. Meanwhile, the District Court of Krakow has not yet reached a decision whether Eurocent can commence the formal restructuring process.

The management of Mintos continues to be in close contact with the administrator of Eurocent about the company’s situation and possible future developments. Currently, Mintos is in the process of evaluating all options to retrieve the outstanding amount owed to investors on Mintos.

Update on Eurocent loans on Mintos peer-to-peer lending marketplace

The company continues servicing the loans and passing on borrower payments to investors on the Mintos marketplace. As a result, since June 8, 2017, the outstanding investment portfolio in Eurocent loans on the Mintos marketplace has decreased in total by 43%.

After suspending automatic buyback of the delinquent loans on the Mintos marketplace in July, Eurocent made a partial buyback of the loans according to company’s financial ability in the amount of EUR 71 000. Similarly, Eurocent made gradual repayments towards the holders of the outstanding corporate bonds. As of October 6, the company had repaid a total of 35% of the overdue bonds.

However, following the appointment of a Temporary Judicial Supervisor by the court on September 29, the company had to suspend the partial fulfilment of the buyback towards investors on Mintos. This was due to the limitations imposed by the supervisor to ensure fair treatment of all creditors of Eurocent.

The main functions of the Temporary Judicial Supervisor are to:

–  verify the financial standing of the company;

–  help the court to make a decision on the reasonableness of the commencement of the debt restructuring proceedings;

–  supervise all dispositions made by the company to prevent it from conducting activities that might be perceived as detrimental to creditors.

As confirmed by the management of Eurocent, the appointment of the Temporary Judicial Supervisor will not affect the regular settlements made by the company towards the investors on the Mintos marketplace. All payments received from the borrowers of loans that have been assigned to investors on the Mintos marketplace will still be transferred on a regular basis.

Meanwhile, Eurocent continues negotiations with several potential investors. If these negotiations result in an agreement, the company’s situation would be resolved out of court and would allow Eurocent to repay its obligation towards the investors in the shortest period of time.

Short recap of what has happened

June 2017: Eurocent could not repay its corporate bonds in the amount of PLN 1.8 million (EUR 425 000), and the placement of new Eurocent loans on the Mintos marketplace was suspended. Read more >

July 2017: Still not being able to repay the full amount of the outstanding bonds, Eurocent submitted an application to the court to restructure the company’s debts. Read more >

September 2017: After evaluating the application, the court appointed a Temporary Judicial Supervisor to Eurocent. All actions of the company that exceed the scope of ordinary management must now be approved by the supervisor.

Eurocent continues servicing loans on Mintos peer-to-peer lending marketplace

Mintos logo

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.

Mintos has temporarly suspended the placement of new Eurocent loans

Mintos logo

Update: latest information about Eurocent loans on Mintos marketplace can be found here.

Placement of new Eurocent loans on the Mintos marketplace has been temporarily suspended. The decision was made by Mintos management following the information that Eurocent has missed the repayment of its corporate bonds.

Eurocent bonds worth PLN 1.8 million (EUR 425 000) were due on June 8, 2017. According to the company’s information, the failure to make the repayment was caused by a delay in the negotiation process to attract new financing.

Following the missed bond repayment, the management of Mintos marketplace made a decision to stop the placement of new Eurocent loans on the primary market, as well as reverse all investments where payments were still in transit to the loan originator. In addition, starting from June 26, operations with Eurocent loans have been suspended on the secondary market, as well. These limitations will hold until bond repayment is resolved.

The management of the Mintos marketplace is in close contact with the management of Eurocent. During a joint meeting, Eurocent’s management outlined a specific course of action to aid the bond repayment – first, by seeking to prolong the bonds, and second, by finishing the negotiations with the investor or turning to alternative sources of financing.

Eurocent continues to service the loans and collect borrower payments that are transferred to the Mintos marketplace for distribution among investors.


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