Transparency Report: Active Deal Workouts and Recovery Updates

As of June 30, 2025

Percent is committed to providing transparency regarding the performance of all deals on our platform. While the vast majority of deals performed as expected, some loans have faced challenges and entered workout status. This page provides detailed information on current workouts, including the underlying borrower, the events leading to the workout, the underwriter’s response, and the current status of recovery efforts.

We believe that transparency and open communication are essential to building trust with our investors. We are dedicated to providing regular updates on workout situations and working diligently to maximize recoveries on behalf of our investors.

Detailed Workout Summaries

Zinobe: Colombian SME Lender

Background: In early 2023, Zinobe faced cash flow issues due to a default by its parent company on other debt, and misused funds assigned to Percent for operating purposes, leading to a violation of the participation agreement central to this deal and a default on the Percent note program.

Underwriter Response: We engaged legal counsel in Colombia and agreed on a recovery path with Zinobe. We enacted legal safeguards to maximize recovery and are actively monitoring the situation and keeping investors updated.

Principal at Start of Default: $1.54M
Recovered So Far: $0.68M (44.1%)
Remaining Principal Outstanding: $0.86M

Current Status: The assets remaining in the underlying portfolio are nearly entirely all delinquent, in particular, a single loan to ASIC S.A.S. which is presently in insolvency proceedings and makes over 80% of the remaining outstanding portfolio. Because of the nonperforming status of this loan and continued doubts about Zinobe’s ability to continue as a going concern, Percent has directed Zinobe to market this loan for sale. Percent and Zinobe have investigated several options and the leading potential buyers at this point are two private debt funds that have expressed interest in acquiring the ASIC S.A.S. debt. However, both had expressed that they want to wait until a later stage of the insolvency proceedings before making an offer. On Tuesday May 27, 2025, Zinobe notified Percent that ASIC S.A.S., the obligor of the large delinquent loan, comprising the vast majority of the remaining portfolio, has proposed a payment schedule for creditors. This was the expected next step in the ASIC S.A.S. insolvency proceedings. The proposed repayment schedule would feature annual payments beginning in 2028 and continuing until 2034 with the largest payments scheduled for the last two years, 2033 and 2034. The payment schedule is still pending approval. Following the receipt of the proposed payment schedule, Percent requested Zinobe to inform two potential loan buyers of the updated status of the ASIC S.A.S. workout. Previously, potential buyers of this loan were not interested in proceeding until the insolvency proceedings progressed further. Further, Percent understands that Tangerine Pomelo Group, S.A.P.I. de C.V., the Mexico-based parent company of Zinobe, is expected to reach a deal with its own creditors soon. That said, a conclusive end to the restructuring proceedings of Tangerine Pomelo Group, S.A.P.I. de C.V. may still be a few months away. Nonetheless, this development reduces the likelihood of a liquidation that would likely have further reduced potential recoveries.

Taiger: Exposure to a senior corporate loan

Background: Taiger was unable to make payment on its principal maturities in January 2024, as various developments affected their strategy, operations, and access to financing, including delays in its Spanish debt restructuring, a shift to smaller contracts related to industry-specific solutions, leading to defaults on junior debt, and delays in convertible note financing and Series C round.

Underwriter Response: Underwriters retained legal counsel in Singapore. Percent, AP-SF, and Taiger agreed on a 6-month forbearance agreement (with two 3-month extensions subject to certain terms) to waive both the event of default and foreclosure on the collateral (shares of Taiger) as well as allowing for PIK interest at the current rate in exchange for consent rights on capital raised, tighter restricted payments covenants, 20% equity warrant coverage, and Board observer seat. Additionally, all parties hosted a webinar for Percent investors to learn more about the business, forbearance plan, and next steps.

Principal at Start of Default: $5.00M
Recovered So Far: $0.19M (3.9%)
Remaining Principal Outstanding: $4.81M

Current Status: On January 7, 2025, Percent was informed by Taiger management that they held a meeting with representatives of its preferred shareholder classes, during which management disclosed that employees are owed six months of unpaid salaries, and key personnel, including the CTO, Chief Architect, and VP of Finance, have resigned. In response, management recommended liquidating the business and sought shareholder approval to approve an orderly liquidation by appointing a professional Singapore based liquidator. On January 9, 2025, Taiger management confirmed to Percent the support from shareholders to move forward with appointing a professional liquidator. Taiger management also confirmed that it has no remaining cash and is requesting ~SGD 52,000 from stakeholders (including Percent) to cover liquidation and advertising costs. Given the uncertainty of liquidation proceeds, Percent decided not to contribute to the liquidation expenses per advice of Withers, our local counsel, because Percent is already in a senior position and should liquidation proceeds not be enough to cover these expenses, we would be unnecessarily draining a significant portion of the remaining cash reserve, which stood at $134,340.00 for the benefit of the TGR1 2023-1 note specifically (for the TGR1 2023-2 note the cash reserve was fully utilized to make interest payments on that note). On March 7, 2025, Percent was contacted by Charles Mah, a professional liquidator nominated by Taiger’s management and preferred shareholders, informing us of a formal creditors meeting to be held on March 21, 2025, as well as documents to be submitted evidencing our claims in advance. Percent and its counsel attended the formal creditors meeting, which was short and procedural in nature as the professional liquidator hosted and managed the call according to the agenda previously distributed. Percent and its counsel nominated Prath Reddy from Percent to be a member of the liquidation’s Committee of Inspection. Four other members, including Sinuhe Arroyo, CEO/Founder of Taiger, were thereafter nominated and appointed as members as well. No other material topics, timeline or next steps were discussed other than that Percent and its counsel will hear back from Charles Mah on next steps with respect to both the liquidation process as well as instructions for the Committee of Inspection. At this time, there are no additional action items for investors to take. Percent and APSF will continue to supply updates on the situation as well as any new developments.

Sharestates (SHA2 and SHA4): Exposure to a senior mortgage

Background: In January 2024, Sharestates notified Percent that the borrower associated with this transaction, Skyward TX LLC, was seeking refinancing of its outstanding loan with the lender in order to repay the outstanding principal balance. While seeking a refinancing, the underlying borrower did not make its contractual payments and the deal entered a workout.

Underwriter Response: Due to the underlying borrower’s failure to provide supporting refinancing or buyer documentation, Sharestates opted to initiate foreclosure proceedings on the property. Sharestates’ legal representative will issue a notice of default to the underlying borrower. As Texas operates as a ‘Non-Judicial’ state, the foreclosure process typically concludes within 8-10 weeks. Sharestates believes it will take approximately 12-18 months for the underlying mortgage to be paid off, including the time it takes to gain ownership of the property and sell it.

Principal at Start of Default: $0.65M
Recovered So Far: $0.0M (0%)
Remaining Principal Outstanding: $0.65M

Current Status: According to Sharestates, the foreclosure sale of the underlying property was completed on August 6th, but Sharestates did not secure a bidder. The underlying property is now in REO status, and Sharestates’ attorney has completed updating the foreclosure deed. Sharestates has already obtained a property manager since the property already has tenants. Sharestates began renovating several units to improve marketability and enhance overall value, with the goal of maximizing returns for investors. Since then, Sharestates has received two offers for the full 131-unit Beaumont portfolio. One offer is supported by a written Letter of Intent (LOI), including proposed seller financing terms, and is considered a serious prospect. The second offer, made verbally, reflects early-stage interest. Both offers are currently under review, and Sharestates is preparing formal counteroffers while continuing to pursue the most favorable outcome for investors. Updates will be shared as negotiations progress. Interest continues to accrue at 11.50% APY on the outstanding principal. In June 2025, according to Sharestates, there are no new updates at this time.

Sharestates (SHA3): Exposure to a senior mortgage

Background: Sharestates notified Percent that the borrower linked to the transaction, Attack Life II, LLC, failed to complete the construction project by the maturity date of the underlying mortgage, on March 1^st, 2024. As the borrower was unable to fulfill the required principal payment by the maturity date of the SHA3 2023-1 note (March 28th), the offering defaulted.

Underwriter Response: Sharestates has identified a replacement individual to oversee the project’s completion. Sharestates is taking the necessary steps in ensuring that this individual has the requisite creditworthiness and expertise to effectively oversee the project. Additionally, the individual will be expected to bring the loan current, establish a three-month interest reserve, and collaborate with Sharestates on a comprehensive loan repayment plan.

Principal at Start of Default: $0.25M
Recovered So Far: $0.0M (0%)
Remaining Principal Outstanding: $0.25M

Current Status: In July 2024, the transfer of property ownership had been finalized and the new borrower assumed the principal balance outstanding, resulting in the loan becoming current. A three-month interest reserve was established by the new borrower. Additionally, the new borrower was required to adhere to the monthly payment schedule stipulated by the loan. The maturity date of the new loan was November 1st 2024, providing the new borrower with five months to finish the construction and either refinance or sell the property. In November 2024, Sharestates advised that the new borrower associated with the property located at 2604 North College Avenue had not made interest payments in October 2024 and had been unresponsive to Sharestates’ outreach efforts. Sharestates was actively working to establish communication with the borrower. If the associated loan remained delinquent, the account could reach 90 days of delinquency on December 1st. At that point, Sharestates would be able to initiate legal action by issuing a notice of default in an attempt to encourage borrower responsiveness and facilitate repayment of the missed interest payments. Following these efforts, Sharestates and the borrower signed an extension agreement, establishing a new maturity date of April 8, 2025, while maintaining all other terms from the original agreement. The borrower for the property at 2604 North College Avenue successfully remitted all outstanding past-due interest payments on February 15, 2025 and is currently working on completing the property’s construction. In March 2025, we were informed by Sharestates, that the borrower for the property requires approximately seven additional months to complete construction and pursue either a refinance or sale of the property. As such, Sharestates and the borrower intend to execute an extension agreement, setting a new maturity date approximately seven months beyond the current April 30, 2025 maturity, while preserving all other terms of the original agreement. Interest continues to accrue at 12.50% APY on the outstanding principal balance. In June 2025, we were informed by Sharestates, that the borrower for the property has requested a 6-month extension with all existing terms remaining unchanged. The extension terms are currently being finalized.

Gas Pos: Exposure to a senior corporate loan

Background: Quiq Capital syndicated approximately $2.4 million of this $6.0 million secured corporate term loan on the Percent platform on a pro-rata basis. In January 2024, Gas Pos did not make an interest payment and partial principal payment when due and the deal went into workout. This was amended shortly after but as Gas Pos has still not been able to secure alternative funding, they have consequently missed a new interest payment in April, and as such the transaction is back in workout status.

Underwriter Response: According to Quiq Capital, Gas Pos aimed to settle the entire outstanding balance of Quiq Capital’s loan that underlies the Percent note program by March 2024 by obtaining financing from USDA. As part of the arrangement, Quiq Capital’s outstanding loan would become subordinated to this new debt as it must be funded in a set of incremental tranches before the Gas Pos loan is repaid. Quiq Capital believed that allowing Gas Pos to secure this financing would preserve collateral value and facilitate a timely payoff of Quiq Capital’s loan maturing in December 2024. As of the end of January 2024, and following the execution of the subordination agreement, Gas Pos has made the accrued interest payments due in January, February, as well as advance payment for March 2024 accrued interest, along with a $450,000 principal paydown on the underlying loan. On January 30, 2024, Percent received note interest payments for January and February, as well as the prorated principal paydown amount from Quiq.

Principal at Start of Default: $2.42M
Recovered So Far: $0.36M (17.65%)
Remaining Principal Outstanding: $2.11M

Current Status: The Underwriter and its special servicer continue to work on the Gas Pos loan towards a payoff. On March 31, 2025, the borrower executed a Letter of Intent (LOI) with a potential acquirer regarding the sale of certain assets and assumption of specific liabilities. The proposed consideration includes: (i) $5.0 million in cash at closing, (ii) $1.0 million held back by the purchaser to be paid one year post-closing, and (iii) a structured earnout over a four-year period following the transaction. Quiq Capital anticipates receiving all or most of the $5.0 million cash component at closing. The transaction was delayed in May 2025 as the letter-of-intent was modified to accommodate an equipment lender. In parallel, discussions with another prospective purchaser have expanded to potentially include not only the merchant portfolio and software but also the equipment lease portfolio, with a total estimated transaction value of approximately $20 million. Negotiations remain active. Quiq Capital is currently working with its legal counsel to evaluate options for either modifying the existing loan or structuring a new facility to account for any remaining outstanding balance not satisfied at closing. In the interim, the borrower continues to make weekly good-faith payments ranging from $10,000 to $20,000, which are being applied directly toward reducing the outstanding principal balance. During the June 3, 2025 investor webinar, Quiq Capital shared that the borrower has resumed principal repayments and is expected to continue. However, a planned asset sale has stalled due to the bank lender’s inflexibility. The borrower is now pursuing an equity raise, which, if successful, could accelerate repayments; otherwise, they will continue via free cash flow. While full recovery remains possible, the timeline has likely extended to 2–3 years. As of July 3, no material updates have been provided on the equity raise.

US ATM ASI: Exposure to a senior corporate loan

Background: Quiq Capital syndicated approximately $3.64 million of this $5.5 million secured corporate term loan on the Percent platform on a pro-rata basis. The underwriter’s Quiq Income Fund, LP continues to retain the balance of the exposure, equivalent to approximately $1.86 million. In July 2024 US ATM did not make an interest payment when due on July 1, 2024 and the deal went into workout.

Underwriter Response: According to Quiq, After communications with Quiq Capital, US ATM ASI said that they plan to make additional payments once some of their larger clients make payment on monthly payables due to US ATM ASI. In June, the Underwriter executed an extension agreement for the existing US ATM ASI loan through August 1, 2024, as US ATM worked through refinancing and/or loan payoff strategies. More recently they began exploring an outright sale of the company to repay the loan as well. Still, US ATM ASI is continuing to work with its investment bank to evaluate takeout lenders. Quiq Capital and Percent have received some updates and confidential materials prepared by the investment bank to track progress.

Principal at Start of Default: $3.64M
Recovered So Far: $0.00M (0.00%)
Remaining Principal Outstanding: $3.64M

Current Status: Quiq Capital has issued default notices to US ATM ASI and the guarantors in connection with the underlying loan. In March 2025, the borrower’s bank accounts were frozen following an ex parte motion for judgment granted to a vendor due to non-payment under a settlement agreement scheduled to commence in January 2025. Although the borrower attempted to resolve the dispute with the vendor and regained access to its accounts, it contends that the freeze was unjust. The accounts were frozen for approximately two weeks, which prevented the borrower from making critical vendor payments and led to the loss of several major clients and essential vendors. All non-essential staff have been laid off. Quiq Capital is in the process of executing pre-negotiation letters with the borrower and guarantors to initiate a workout process focused on the sale of business collateral to satisfy the outstanding loan obligations. During the investor webinar that was hosted on June 3, 2025, Quiq Capital provided the following update on the US ATM ASI transaction: Quiq Capital continues to conduct 1–2 calls per week with the management team of US ATM ASI to finalize an asset sale plan. Additionally, US ATM ASI is working with its restructuring advisors to reduce its Accounts Payables. The near-term priority is the recovery of an expected $1–2 million Employee Retention Credit (ERC) tax refund, which Quiq Capital anticipates will be collected shortly despite industry-wide delays. Proceeds are expected to be used to pay down principal. Although US ATM ASI is no longer operating, key personnel remain on payroll to preserve asset value and assist in the liquidation process. This includes several key owners who have provided personal guarantees. Quiq Capital has engaged an independent expert to assess the value of the owners’ collateral and guarantees, enabling prompt enforcement should the asset sale proceeds fall short of repaying the loan in full. Quiq Capital is taking a strategic approach by incentivizing the owners to maximize sale value while making clear that it is prepared to pursue personal collateral if necessary. The failed sale process had a credible resolution path, evidenced by Quiq Capital’s own $650K loan originated in December 2024 to help the Company meet critical vendor payables as it continued to run its sale process. This loan sits pari passu to the other US ATM ASI loans held by Quiq Capital and Percent. Quiq Capital continues to hold the majority interest in the transaction, with its principals personally invested, underscoring alignment and a strong incentive to maximize recoveries.

Fiberight: Exposure to a senior corporate loan

Background: The borrower did not make a payment when due on July 31, 2024 so the transaction was categorized as in workout in August 2024 (after the grace period ended). Fiberight had been working on refinancing the loan without outside capital. In communications with the third-party underwriter for this transaction, New Technology Ventures, and Percent, Fiberight has said that they have agreed to a hard deadline with an investor providing Fiberight with equity capital. This date was set to August 19. By then, Fiberight expected to raise enough capital to repay the entire note’s principal and accrued interest balance but this did not materialize.

Underwriter Response: New Technology Ventures and Percent did receive some updates and confidential materials related to the contemplated refinancing, which included a signed term sheet. When the transaction fell through, Percent was notified of the company’s intent to go through a voluntary liquidation. Fiberight filed for a creditors voluntary liquidation on October 1, 2024. Charles Hamilton Turner and Jack Callow from Opus Restructuring LLP were formally appointed as Joint Liquidators of the company.

Principal at Start of Default: $0.54M
Recovered So Far: $0.04M (7.5%)
Remaining Principal Outstanding: $0.49M

Current Status: Liquidators confirmed that at least as of the date of commencement of liquidation proceedings, of the dozens of creditors (most very small) Percent is the only known creditor with a ‘fixed and floating charge’ (a first lien security interest) on substantially all of the company’s assets. However, the company also had individual equipment finance agreements with 3 lenders with outstanding balances of approximately £0.85 million ($1.09 million). There are also some amounts due to employees and tax authorities in the UK. On Monday December 9, 2024, the liquidators disclosed to Percent that despite their attempts, the landlord of the premises Fiberight leased refuses to grant the Joint Liquidators access to the site which has made it difficult to proceed with realising the value of the equipment. Percent communicated with the landlord to clarify our charge on a substantial portion of the assets of Fiberight and demand that they give access to the liquidators promptly and is exploring other legal options. After failing to receive a response and learning that the liquidator and other creditors were experiencing the same difficulty, Percent began working with legal counsel to explore alternative routes. Further, in seeking to enter into an agreement to sell whatever right and title Fiberight Ltd has in various intellectual property assets, following discussions with a connected third-party company which has claimed the IP assets belong to them, the liquidators have agreed a basis to settle the dispute that has arisen which will ensure proceeds from this settlement will be available to the liquidation estate. In June 2025, Capital Law (Percent’s legal counsel) requested additional information from the liquidators. The liquidators also disclosed new challenges impacting recovery. The landlord, owed back rent, has claimed a lien over assets at the leased site and changed the locks, blocking access. As a result, the liquidators disclaimed the lease, citing high legal and insurance costs and safety risks due to combustible waste. Percent’s counsel noted that even if funds were available to pursue a remedy, any recovery could benefit other creditors. With no access to the premises, the liquidator expects no recovery from fixed assets. Further details on Fiberight’s IP assets will be shared once their investigation is complete.

Littlemees Limited and Littlemees USA (The Cloud): Exposure to a senior corporate loan

Background: Littlemees Limited (“The Cloud” or “CLD”) communicated on March 15, 2024 that the CEO of The Cloud, George Karam, had resigned from his position. According to the Board of Directors of CLD, this outcome was the result of fundamental strategic disagreements between Georges Karam and the Board of Directors. In summary, Georges Karam wanted to develop CLD’s business in non-Gulf Cooperation Council (“GCC”) countries while the Board of Directors wanted to focus on GCC markets, particularly Saudi Arabia and the United Arab Emirates. In May 2024, Percent and Aluna received information from The Cloud’s management and Board of Directors about the The Cloud’s deteriorating financial condition following Georges’ departure and need to raise sufficient equity capital as well as the need to restructure CLD Notes in order for The Cloud to execute on its business plan to become cash flow positive and eventually repay CLD Notes. On September 10th 2024, following missed principal and interest payments, the transaction moved into “workout” status. Littlemees USA LLC is a subsidiary of Littlemees Limited (“The Cloud”) and had raised capital on Percent through its KBX1 note program to fund international expansion in December 2023 with a 15 month final term. The security for this KBX1 note program consists of newly acquired assets of Littlemees USA LLC. Affected by the same aforementioned issues of The Cloud and disruption in the international expansion plans, they missed the principal payment due in March 2025, and the status of that program was as well moved to workout.

Underwriter Response: Over the course of May, June and July, Percent and Aluna specifically:

Negotiated a restructuring proposal for CLD Notes directly with The Cloud and it’s Board of Directors that contemplated a variety of terms and conditions intended to support The Cloud’s business plan and financial needs as well as facilitate the successful separation of business entities, including but not limited to: i) An extension of the maturity by 24 months and deferral of interest until profitability is sustained in order to extend The Cloud’s cash runway in exchange for equity warrants and additional common shares to provide some potential upside compensation for CLD Note holders, ii) Requirement that The Cloud and its shareholders raise at least $2 million in new equity for working capital needs, iii) Provide right of first refusal on transferring certain international assets to Georges Karam to assist the separation process (namely the divestiture of certain loss-running non-GCC subsidiaries), iv) Providing Percent a variety of covenants, consent rights and representations in order to protect CLD Notes, v) engaged Eptalex as local counsel to advise us on a variety of matters including a proactive analysis on liquidation scenarios for The Cloud to ensure our security would be recognized in local courts and formulating a plan of action in the event the CLD Notes restructuring was unsuccessful.
Concurrently collaborated with Georges Karam to protect KBX Note holder interests to create a new UK Holding entity that currently and will own all international non-GCC operations including the assets acquired from the original proceeds of the KBX Note (a separate offering on the Percent platform which funded a specific subsidiary of The Cloud).
After Aluna and Percent communicated the acceptance of the final CLD Notes restructuring proposal in late July, we learned in August that the Board and a faction of existing venture equity shareholders that are aligned with the Board have decided to vote in favor of liquidating the company instead. While Aluna and Percent attempted several times to bring the Board back to the negotiating table, it has become apparent that the Board: i) No longer has any interest in growing The Cloud according to their own proposed business plan and ii) Was unable to raise enough of the equity capital required for the restructuring proposal.
With guidance from Percent’s local counsel, Eptalex, a liquidation petition was filed. However, on November 13, 2024, we discovered that a separate petition was filed by the borrower. We requested the court appoint our proposed liquidator, either as replacement for the borrower’s proposed liquidator or to work collaboratively with their liquidator but this was rejected by the judge. Shahab Haider of Compliance Forte LLP was appointed liquidator of the borrower. While Percent, Aluna and Eptalex proactively prepared for the liquidation, the timeline for a liquidation sale and resolution is subject to ADGM court procedures and we continue to expect this to take several months based on Eptalex’s guidance. The CLD Note is the only known secured debt obligation of The Cloud according to our counsel’s searches, so irrespective of who initiates the process, the liquidator will work in CLD Notes holders’ best interest.

Littlemees Limited:

Principal at Start of Default: $2.00M
Recovered So Far: $0.00M (0.0%)
Remaining Principal Outstanding: $2.00M

Littlemees USA:

Principal at Start of Default: $2.58M
Recovered So Far: $0.00M (0.0%)
Remaining Principal Outstanding: $2.58M

Current Status: We continue to collaborate closely with Georges Karam and his UK HoldCo team to protect KBX Note holder interests and ultimately CLD Note holder interests upon the conclusion of the liquidation. The UK HoldCo, which is the secured guarantor of the KBX Note (and future secured guarantor of the CLD Note post The Cloud’s liquidation) has been fully operational now for several months in the UK under a new name and brand, “Global Food Ventures”, or “GFV”. To ensure GFV continues to achieve scale, attract equity investment and ultimately service and repay both KBX and CLD Notes, Percent and Aluna have extended GFV terms and conditions to postpone the repayment of the KBX Note by one year and GFV has subsequently accepted these terms. Counsel continues to advocate to the liquidator and ADGM courts Percent’s senior secured position and desire to facilitate the sale of assets to Georges Karam to be purchased by transferring the totality of the outstanding CLD Notes to GFV in consideration for the purchase price. The liquidator followed up on March 12, 2025, with a statement of affairs outlining the assets and liabilities of the company, as well as minutes and an attendees list from the meeting. Georges Karam, Percent and Aluna hosted a webinar on March 12, 2025, and discussed the original rationale for CLD and KBX Notes, events and progress to date, the vision for GFV and paths to debt repayment for both CLD Notes and the KBX Note. As of June 2025, Percent and Aluna Partners have been in ongoing active dialogue with Georges Karam and Eptalex in order to facilitate an orderly separation of The Cloud and NewCo while ensuring CLD1 2023-1, CLD1 2023-2 and KBX1 2023-1 holders are protected. With counsel, we continue to work with the liquidators and ADGM courts to advance Cloud’s liquidation and facilitate the sale of its assets to Georges Karam’s UK HoldCo, Global Food Ventures, through a transfer of the CLD Notes. Since the February 27 creditors’ meeting and March 12 statement of affairs, no formal updates have been issued, but counsel remains engaged and expects an update shortly. GFV has made operational progress, growing revenue, expanding its footprint, and raising $300K in junior capital. Two acquisitions expected to close by August will be funded by ~$1.6M in subordinated debt. GFV is currently unable to resume interest payments under the KBX Note without hindering growth. We are negotiating a revised forbearance agreement to extend PIK interest, with terms aligned to upcoming acquisitions, improved cash flow, and a revised financial model. The KBX Note principal stood at $2.78M as of May 31.

Rocketfy: Exposure to a senior corporate loan

Background: On January 9th, as the maturity of February 28, 2025 for the ROC Corporate Loan Sr. 2024-2 Unsecured Note (“ROC1 2024-2”) was approaching Percent reached out to the third-party arranger, Aluna Partners (“Aluna”), for confirmation that Rocketfy S.A.S. (“Rocketfy”) was expecting to rollover the outstanding principal amount on ROC1 2024-2. On February 7th, Aluna advised that Rocketfy would be unable to make the interest payments for ROC1 2024-2, ROC Corporate Loan Sr. 2024-3 (“ROC1 2024-3”) and ROC Corporate Loan Sr. 2024-4 (“ROC1 2024-4”), (collectively, the “ROC1 Notes”). The cash reserve was used to make the interest payments due on January 31, 2025, totalling $29,075.49, and as of March 3, 2025 the cash reserve for the ROC1 Notes stood at $156,490.41. On February 10, 2025, Percent met with Aluna and Rocketfy to discuss their business and financial position. Rocketfy expressed that, based on the competitive position of their product offering compared to that of competitors, their revenues have meaningfully fallen and that they were unable to service the principal of the ROC1 Notes, resulting in a missed payment. As a result, on March 7, the notes were moved to workout status.

Underwriter Response: Percent and Aluna Partners began negotiations of a restructuring of the payment obligations of Rocketfy with respect to the ROC1 Notes moving forward. This was agreed on March 28, 2025. Under the new repayment plan, no payments will be due until the Borrower has realized earnings before interest, taxes, depreciation, and amortization (“EBITDA”) greater than $0.00 in a month OR the Borrower has earned gross revenue greater than $650,000,000.00 Colombian pesos in a month. After this is achieved, the amount of cash interest will be the greater of one hundred percent (100.0%) of EBITDA in excess of $0.00, if any, in the immediately prior calendar month or sixty percent (60.0%) of gross profit in excess of $650,000,000.00 Colombian pesos, if any, in the immediately prior calendar month. Any excess interest accruing above this amount will be paid-in-kind (“PIK’ed”). Percent and Aluna Partners have also taken certain actions to improve its security in the event of a liquidation or restructuring of Rocketfy.

Principal at Start of Default: $1.87M
Recovered So Far: $0.00M (0.0%)
Remaining Principal Outstanding: $1.87M

Current Status: There are no material updates beyond the ‘Underwriter Response’ above. Rocketfy continues to struggle with customer acquisition, particularly among mid-sized clients. As a result, the company is now focusing on smaller clients.

FIT SRL: Exposure to a senior corporate loan

Background: On February 28, Aluna advised that FIT SRL (“FIT”) was in breach of the minimum cash balance covenant due to some delays in collecting the invoiced amounts with its largest customer, Lotus Technology Innovative Limited (“Lotus”). Further, Aluna informed Percent that FIT was seeking to raise additional equity from its shareholders to restore the minimum cash balance and have a healthy buffer to run the company until the invoices are settled by the client. On March 4, Aluna informed Percent that based on updates received from FIT, Lotus stopped meeting its contractual obligations at the end of December 2024, including payments and issuing new orders. More extensive information was received by Percent on March 14, indicating that a commercial dispute has developed between FIT and Lotus. On March 21, 2025, Percent did not receive the scheduled interest and principal payment due at the maturity of FIT1 2024-1 or interest due on the other FIT notes outstanding, and as such the deals were marked as in workout status.

Underwriter Response: Given where FIT stood in relation to its goals, whether with respect to its contract with Lotus, traction with other customers and fundraising, and the amount of new capital needed, and especially given the timing and status of the dispute with Lotus, Percent did not believe a new offering to platform investors could be justified. Further, by the time sufficient information had been received to assess this possibility, there was little time with which to arrange a refinancing, even if Percent had been comfortable with the risk and had the most recent updates been positive.

Principal at Start of Default: $2.30M
Recovered So Far: $0.00M (0.0%)
Remaining Principal Outstanding: $2.30M

Current Status: FIT is employing legal counsel to represent it in its dispute but is also open to attempting an amicable commercial solution. FIT insisted that damages that it is prepared to seek in court, if needed, may exceed €20 million. On May 9, 2025, FIT’s CEO met with Aluna and Percent to discuss the borrower’s situation. FIT confirmed it has not yet filed its legal claim against Lotus due to funding constraints, though UK jurisdiction has been confirmed. The lawsuit will target Lotus Technology Innovative Limited and affiliates, with an estimated 18-month timeline absent settlement. A €13M settlement offer from FIT was previously rejected. The €25M damages claim includes reference to the Percent notes, which FIT considers fully represented. FIT holds ~132 bikes and frames (valued at €9K each) and is exploring legal and resale options, though branding and ownership rights are still being reviewed. FIT is working to raise funds through the sale of €500K in VAT credits and potential litigation financing. Liquidity challenges persist, including an unresolved $220K FX margin call and operational strain from workforce losses and limited new business. While some investments are reusable, FIT’s business continuity depends on securing near-term funding or legal resolution.

Bringo SpA: Exposure to a senior corporate loan

Background: On March 21, 2025, Percent received a communication from Bringo SpA (“Bringo”) explaining that a partnership with a key distribution channel, that with Abastible, a natural gas distribution company in Chile, was at risk of not continuing into the future. When a new supply contract was being negotiated in March 2025, Bringo found the terms did not meet its minimum expectations. Specifically, Bringo found the lack of clear commitments regarding purchase volumes and monthly minimums inadequate. Without such commitments Bringo believed it would be impossible to raise additional capital for its business. On April 21, 2025, Percent and the third-party underwriter for this transaction, Aluna Partners, received a communication from Bringo notifying us that the company has decided to cease operating and commence a liquidation process.

Underwriter Response: Aluna Partners has been engaging local counsel in Chile to represent Percent in the liquidation proceedings. The liquidation process is still in very early stages.

Principal at Start of Default: $0.54M
Recovered So Far: $0.01M (3.1%)
Remaining Principal Outstanding: $0.53M

Current Status: There are no further material updates beyond the ‘Underwriter Response’ above. In furtherance of the company’s liquidation, a liquidator has been appointed (Leonardo Andrés Álvarez Orozco) and a liquidation resolution issued.

Understanding Workouts

A loan enters workout status when the borrower fails to meet their payment obligations or violates the terms of their loan agreement. Workouts can occur for various reasons, including financial difficulties faced by the borrower, changes in market conditions, or unforeseen events. When a loan enters workout, the underwriter responsible for the deal takes proactive measures to address the situation and protect investor interests. This may include negotiating with the borrower, restructuring the loan, or pursuing legal remedies.

We will continue to provide regular updates on these workout situations, including any significant developments or changes in status. Investors are encouraged to review these updates and the associated deal documentation for the most current information.

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We invite you to reach out to us with any questions or concerns you may have regarding specific workouts or the workout process in general. Our team is dedicated to providing you with the information you need to make informed investment decisions.