German alternative lender Monedo files for bankruptcy

German online lender Monedo (formerly Kreditech) has filed for bankruptcy according to German publication Manager Magazin.

The Hamburg-based fintech applied for “preliminary bankruptcy” last week citing the coronavirus-related economic turmoil as the reason. 

Monedo reportedly fell into the red after several European governments passed laws meaning that borrowers could postpone loan repayments because of the coronavirus pandemic. 

The fintech was particularly affected by the new laws introduced by the Spanish and Polish governments, the fintech’s largest markets. 

Monedo has appointed Christoph Morgen from law firm Brinkmann & Partner as the preliminary insolvency administrator. 

In a statement, Morgen said: “I plan to continue operations and have already started talks with possible financiers.” 

“It is my goal to bring the investor process, which was started before the insolvency application and which according to the Monedo management looks promising, to a successful conclusion.” 

Monedo’s 300 employees were reportedly told via video conference call that Morgen has every intention of keeping the business afloat despite the financial difficulties.  

According to Finance Forward, this is not the first time Monedo has found itself in a sticky situation, it reportedly almost fell into bankruptcy back in 2018 after a series of loans went bad. 

The news of Monedo’s financial difficulties come just three weeks after the fintech’s CFO Mariusz Dabrowski departed, citing “personal reasons” for his exit, as first reported by Finance Forward.