We would like to inform you about the actions that Grupeer takes to fulfil the obligations towards investors. During the last month we were working closely with our debt collection partner to ensure repayments, and focusing on the restoration of economic activity of SIA “Grupeer”.
We put a lot of effort into developing a solution that would allow us to speed up repayments to investors. As we had written earlier, Recollecta took over debt collection and management of the repayment process. The agreement between Grupeer and investors allowed the company to engage third parties to enforce claims against loan originators.
We are grateful to those of our loan originators who are actively communicating with us and are ready to start repayments as far as all payment details are agreed upon.
We want to emphasize that refusal to repay the debts via Recollecta has no legal grounds and is considered as an attempt to avoid payments under the contract with all legal consequences that occur in case of the contract violation.
SIA “Grupeer” economic activity
As we wrote before, the State Revenue Service of Latvian Republic has stopped the economic activity of SIA “Grupeer”. Currently, the company has partly repaid the labor force related taxes, the information about the accepted payment will be updated within the next few weeks. After that, Grupeer will resume full operation as a company and legal entity.
We can now confirm that in cooperation with our debt collection partners we have started legal actions against several Loan Originators. The amount we are seeking to recover for the benefit of investors at this moment totals to approximately 10 million euros.
Unfortunately, a significant number of the Loan Originators have been deliberately evasive, have either openly refused to pay the funds loaned to them or failed to engage in any form of communication with us. In some instances, we have even detected attempts to hide assets. Therefore, we will be seeking preliminary injunctions against these Loan Originators and attachment of assets.
Since many of the legal steps are taken on ex parte basis (i.e. without participation and knowledge of the respective defendant), at this point we will not share details of the proceedings. We will make the information public as soon as it will not present potential harm to the relevant case(s).
We expect the proceedings to be over relatively soon, because most of the loan agreements are subject to the jurisdiction of our local arbitration, which in comparison to litigation in state courts (in many instances, overseas) is a much faster process.
Meanwhile, Latvian law firm “Ellex Klavins” has notified us that they on behalf of certain investors will seek a declaration of insolvency against us. We strongly believe that there is neither legal, nor factual basis for such action, however, it is our duty to inform the investors of such a threat. In case of insolvency, all collection proceedings both extra judicial and in an arbitration commenced by us will stop by operation of law. We will keep you informed about the developments.
Thank you once more for your patience and understanding!