Update about war-affected assets in Ukraine (OCTOBER)

Debitum has collected the latest information and data (up to 15th of October) about Loan Originator’s “Chain Finance” borrower and its war-affected assets in Ukraine.

Please find the summarized information below.

Financial and operation status on 15^th of October

As we already informed previously “Chain Finance” borrower has stopped any operations related to new client acquisition and focus all efforts on preserving the maximum possible value of the existing portfolio and recovering financial assets.

• The borrower in total has managed to repossess 19% of all vehicles (2% during the last month). 11% of cars out of repossessed are sold.
• 5% of all cars are confiscated for Ukraine army use or are in heavily war-affected or occupied regions.
• In September 12% of the remaining clients haven’t made any payments. For other active clients, adjusted payment plans have been developed and these clients are making partial or full payments according to the new plan
• The collection of the rest of the vehicles is getting more time-consuming and more expensive.
• On the 15^th of October, the borrower accumulated in total 16 974 711,09 UAH (458317,19 EUR @ exch. rate uah/eur of 0.027) in the dedicated bank account for Debitum investors.
• During September, the situation with accumulated funds (collected from paying-in-time customers or from repossessed and sold assets) value has stabilized and no decline (HRYVNIA against EURO) is observed.

Repayments to investors

• The situation with repayments to investors hasn’t changed – even though part of repayments are collected, due to Martial Low in Ukraine, business-related money transfers from Ukraine to other countries are prohibited (including Latvia)
• No principal or interest repayments for claim rights will happen during Force Majeure caused by the war situation in Ukraine
• Penalty interest will not be applied as a reason for delayed payments in the Force Majeure situation stipulated in the agreement
• Borrower accumulated funds will be distributed equally to all involved investors after the Force Majeure end or when another solution will be found how to access the capital of the Ukraine borrower

More information about Martial Law in Ukraine you can find:

rferl.org/a/ukraine-Russia-martial-law-extendeducci.org.ua/en/press-center/

Other scenarios and plans

In parallel with ensuring the company’s operational activity, we identify other ways to resolve the current situation in the interests of Debitum investors

We have contacted debt collection companies in Ukraine with a request to assess and discuss the purchase of the borrower’s portfolio. During contact with potential buyers, we have not received expressions of interest.

We have consulted with an international company specializing in debt collection – Credit Reform – about possible debt recovery from the borrower. Credit Reform conclusion is that, given the current conditions in Ukraine, debt collection is impossible.

We will continue to monitor and request operational and financial data from the borrower to ensure the investor’s capital can be regained at the maximum rate. We will inform you as soon we will have any other important information on this matter.