When will the SME who has defaulted on their repayment obligation be brought to court?

We will only consider taking the SME to court if our attempts to engage the SME verbally or in writing (which includes the serving of legal documents) for repayments to be made had failed. Nevertheless, as there are fees payable to the court if we initiate legal action against any SME, we will have to also weigh the cost to be incurred for such actions against the probability of recovery.

For legal actions which involve the filing of a bankruptcy application against the Personal Guarantors of a promissory note and/or winding up application against the SME, we also require the approval from the majority of affected Investors as they would have to bear the costs.

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