Posted by As previously covered, interest payments on Nera Capital loans have been suspended since March 26. The reason behind this is the ongoing solvency reviews conducted by the UK’s Solicitors Regulation Authority (SRA) concerning the law firms that Nera Capital works with.
Mintos has now communicated that the scheduled principal repayments due on May 20 were not made, and that further repayment delays are expected. It was also clarified that the SRA review is focused on a specific group of UK law firms handling high case volumes, not the entire litigation finance sector, as originally communicated by Nera Capital.
According to Mintos, active negotiations are currently underway with Nera Capital, the law firms, and other financiers to protect the ongoing legal cases. A restructuring of the loan terms is therefore a realistic possibility. However, a full resolution is not expected in the short term, as the resumption of payments will depend heavily on the completion of the SRA review. More than EUR 60 million of investor funds are affected.