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What is Goparity's debt recovery procedure?

In the event that a promoter defaults and remains in debt to investors for a prolonged period of time, Goparity implements its debt recovery protocol, designed to ensure that the promoter fulfils its contractual obligations to investors.

This procedure may include the following stages:

1. When the promoter of a project fails to pay an instalment, Goparity immediately contacts the promoter to inform them of the overdue amounts and request that they be promptly settled.

In order to compensate investors for this delay, the promoter is charged default interest for each day of delay, counting from the first day the promoter defaults. This amount is credited to the investors' wallet when the payment is regularised, as long as the promoter has sufficient funds. Otherwise, Goparity prioritises the payment of the delayed instalment, settling the amount of default interest as soon as possible.

2. If the promoter does not regularise its situation promptly, Goparity will continue to try to establish contact using all possible means of communication, namely e-mail and telephone. The possibility of passing on information to investors will depend on the responsiveness of the promoter, which is responsible for fulfilling its contractual obligations, informing about any difficulties it may be experiencing.

If there is no voluntary regularisation within 15 days, Goparity will then try to gauge the amount expected to be recovered. This figure varies depending on the promoter and on factors such as its activity, its assets and guarantees, as well as the general liabilities involved.

It is usually between stages 1 and 2 that the possibility of restructuring the loan may arise, if this proves to be the best course of action in order to restore payment fulfilment.

3. If there is a possibility of recovering part or all of the unpaid amount, and if this amount is sufficient to cover all the associated recovery costs (i.e. internal resources, lawyers, enforcement agents, costs and taxes) and compensate the investors, Goparity will promote a single joint legal action on behalf of all the investors.

As part of this joint action, Goparity's team will always endeavour to recover the maximum amount owed in the shortest possible time. This may involve, in certain cases, establishing judicial and/or extrajudicial payment agreements with the promoters, with the aim of creating the conditions for them to regularise payments to investors and continue with the project.