CaixaBank Offers €1.1 Billion in Delinquent Loans to Funds

25/03/2014 – Expansion

Catalonian entities race to lead in sales of unpaid credit portfolios to vulture funds in 2014. Catalunya Banc has been the first to take the path on its way to privatization.

Now CaixaBank puts on sale a €1.1 billion worth of deliquent credits granted to the SMEs and big companies. The operation was denominated as “Flanders Project” and is advised by KMPG.

One of the most important features of the portfolio is that large part of the loans has got a collateral security, mainly tied to industrial warehouses, businesses and offices. (…) By now, only unsecured credits used to find a purchaser.

The sale includes about 33.000 unpaid credit files, most of them from regions of Madrid, Catalonia and Andalusia.

The “Flanders Project” consists of four sub-portfolios: Brujas, Amberes, Gante and Lovaina. The last is the one that contains the property-linked loans, jointly valued at €70 million.

Out of the 33.000 files, 67% is under legal proceedings to recover the lent money and 55% belongs to the SMEs and big companies in insolvency process.

Investors interested in the offer shall present their non-binding offers before 10th April.

(…) In 2013, the biggest credit portfolio sales were starred by Savia Asset Management, such vulture funds as Elliot, Cerberus, D. E. Shaw and AnaCap as well as international collection platforms: Lindorff and Aktiv.

After the ice-breaking step of CaixaBank, several new credit portfolios are expected to be put up for sale in forthcoming weeks. (…).

The “Flanders Project” currently competes with the “Cava Project” run by Catalunya Banc. That portfolio contains €1.6 billion distributed over three sub-portfolios. (…)

Except for the portfolios, there are also three banking platforms for sale, namely those of Cajamar, BMN and Liberbank.



Original article: Expansión (Jorge Zuloaga)

Translation: AURA REE