The team at Lithuania’s Debitum, a borderless financing platform, has shared omportant news about “war-affected assets” in Ukraine
On March 30, 2022, Debitum had received “an official response letter and data from the borrower in Ukraine.”
This data consists of the company’s “update on its operations, full portfolio, bank statements, the situation with clients and assets.”
Importantly, the company “is functioning, they are not going into foreclosure and it has plans to continue developing its business after the war.”
While some workers are still seeking shelter, the CEO and key managers “have made it to a relatively safe place and have managed to continue work within the company to function and maintain its operations during and after the war.”
Management believes it will be “possible to regain sufficient repayment flow as the war ends.” And “all the pledged assets (cars) in favor of Debitum investors are constantly monitored using the GPS tracker.” Also, company employees have been “contacting its clients to get to know and predict clients’ possibility to make repayments after the war.”
The company “has communicated with its clients.”
As noted by Debitum:
“After trying to contact all the clients, 80% have responded and have given updates about their location and financial situation. Over 60% have partially or fully lost their income at the moment. Primarily all clients are relocated to Western Ukraine or outside Ukraine’s borders. After questioning about payments, over 1/3 of the reached clients have paid some amount or are interested in paying the rest of the loan amount after the war ends.“
The assets (cars) “are located and monitored.”
The assets are “equipped with GPS and are easily located with technology every day.” Monitoring of the assets is “done by frequent communication with clients, reassuring asset location, and the condition of the cars.”
As noted in a blog post by Debitum, “80.1% of cars are in a relatively safe place and can be used as collateral in case of delayed payments after Force Majeure ends.” But 5.6% “are damaged or used by the Ukrainian military.”
In case of delayed payments and/or default from the client, the company will “be able to confiscate cars, sell them and use the proceeds to cover the outstanding debt.”
Debitum also clarified:
“No principal or interest repayments will happen during Force Majeure. Penalty interest will not be applied as a reason for delayed payments in the Force Majeure situation stipulated in the agreement.”
There is currently “no clarity about the total assets repayments in the future.” A lot “depends on how and when the war in Ukraine ends and the company’s future prospects.”
Debitum confirmed that they would “continue to update the situation.”