Lenndy will no longer sell loans secured by the BuyBack guarantee

Go back Thu, 2021-03-18

Dear Investors, 

 

Due to the risks associated with loans secured by the BuyBack guarantee, Lenndy platform is changing its business model and will no longer sell loans secured by the BuyBack guarantee to investors (related information).


Regarding current loans, issued with “Buyback” guarantee, on the basis of art. 9.1 of Lenndy Claim Assignment Agreement (Special Terms and Conditions) Lenndy platform operators exercised the right of buyback of the loans and re-purchased all loans with „Buyback“ guarantee from Lenndy investors on March 17, 2021. All capital + accrued interest as of March 17, 2021 is redeemed.


Key factors: 
 

  • Following the re-purchase of claims from investors, the loan operators became directly liable to the investors as legal entities.
  • Priority is given to covering full capital first and, after capital is returned in full, the accrued interest will be covered. 
  • Each loan operator covers liabilities for repurchased claim rights based on its cash-flow.
  • Lenndy ensures that all funds, received from loan operators, are distributed to the investors in proportion to the size of their portfolio.
  • Investors may sell their receivable claim rights which have been re-purchased by operators to other investors in Lenndy secondary market platform.
  • Lenndy shall continue to monitor cash-flows of loan operators and work closely with the operators to seek expedient recovery of investors’ capital. In addition, Lenndy currently conducts financial audits of loan operators.
  • Investors can use an “Expand” function under “Active claims” section to get the detailed information of claim rights.

 

Please note that all active loans without buy-back guarantees are not affected by these changes and shall be covered in usual manner.

Despite the many challenges of 2020, Lenndy team is enthusiastic about the work ahead. We shall keep you updated on further developments.

If you have any questions regarding this change, please contact Lenndy on: hello@lenndy.com

We will be happy to assist you. 

 

Lenndy team