March 14, 2020
Today I received an e-mail from Crowdestor regarding their early exit option
E-mail from Crowdestor
Dear investors,
At the end of January, when our industry experienced a reputational damage, we received a lot of requests to allow exit from projects before the end of the loan term. We understand and respect such position so in our statement we promised to provide you a provisional Early Exit option until a fully operational secondary market is being developed.
We would like to announce you that from today Early Exit option for several of our projects is available.
This will not be a buy-out by third party investors. This will be a buy-out carried out by the Borrowers themselves on CROWDESTOR, who will also be the ones determining the amount of funds meant for the buy-out and the Discount Rate. Not all Borrowers are ready to offer such an option as not all have funds available for such an unexpected procedure.
We have provided the information about the Early Exit option on your CROWDESTOR profiles, where you can familiarize yourself with the procedure and the list of Projects available for Early Exit. We will inform if/when a new Borrower will join the Early Exit procedure.
Those investors who submit the Early Exit application will be bought out by Borrowers if Borrower will have sufficient funds for such transaction. CROWDESTOR will earn a fee from each Early Exit transction. Investors who will not submit Early Exit application will remain as Lenders on the same conditions as previously. Borrowers/companies who will buyout part of loans will remain with lower amount of liabilities as a result the financial solvency will not decrease for the Borrower.
You will have a 30-day period to carefully consider if you wish to proceed with the Early Exit option.
We kindly ask you to reconsider the option carefully and thoroughly before engaging, do not make a hasty decision, and in case of any questions, we are, of course, here to answer them.