Important : this article is addressed only to the Lenders of the Project that is subject to a collection procedure. The information contained herein shall not be reproduced, copied, distributed or disclosed to third parties other than your advisers acting in the course of their professional activities or under the conditions provided by law. The dissemination of such information may be detrimental to the lenders of the project as part of a recovery procedure.
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The bank of Valle de los Valfríos has rejected the direct debit for April instalment. This is the fourth late payment.
As mentioned last month, we have complied with the required 3-month waiting period to initiate the judicial recovery process against the company and the guarantor. Therefore, we have requested the recovery agency to start the judicial process against both of them.
What actions have we carried out?
The external recovery agency has notified the company of the early termination of the contract and has claimed the repayment of the outstanding capital.
The agency has made an appointment with the judge to declare the debt on behalf of October lenders. The judge will proceed to settle a date to review the case. Throughout this process, Valle de los Valfríos will be allowed to present claims.
What are the next steps?
When this phase is over, the judge will have two options:
We will give you more information as soon as possible.
Summary of the project:
| Status of the project | >30 days delay |
| Length of the project (months) | 36 |
| Number of repayments paid | 20 |
| Number of repayments go be paid | 16 |
| Number of repayments in default | 4 |
| Management of the collection | External recovery agency |
The bank of Valle de los Valfríos has rejected the direct debit for March instalment.
The borrower is currently facing liquidity problems due to its investigation by the Courts and the health authority. This project has a personal guarantee of the company’s CEO.
The Spanish law states that we must wait for 3 late instalments to initiate judicial recovery process against the company and the guarantor. This month, we have reached the third late instalments, hence we have proceeded to request the agency to start the judicial process against both the company and the guarantor. Please note that having the CEO’s personal guarantee does not ensure the recovery of the funds.
The borrower Valle de los Valfríos has not paid the February instalment.
What happens?
Since June 2018, the company has been under investigation by the Courts and the health authority, together with thirty other companies of the sector, for relabelling out-of-date and in poor condition hams in order to sell them as fresh.
What are the next steps?
We have passed on this project to the recovery agency to carry out the recovery of funds.
As a reminder, the recovery phases are as follows:
Our next communication will take place in 1 month.
The bank of Valle de los Valfríos has rejected the direct debit for the January instalment.
As a reminder, the company borrowed €150,000 over 36months from 617 investors in April 2017. It is the first time that the company is missing a deadline.
The company has told us they are facing liquidity issues. We are in contact with them to find a solution.
We will send you more information as soon as possible.