By May 5th, the investors interested in purchase of “the Octopus Project” portfolio could present their binding offers. The stake is a €4.5 billion portfolio of Eurohypo including financial assets backed by property. Some of the debtors whose real estate is to change the owner promptly have asked potential buyers about possible changes borne by their acquisition of the lot.
Except for the up-to-date debtors and those capable to redeem their loan, the rest of the affected with subperforming or nonperforming loans are considering taking a legal action against the bidding winner by declaring themselves insolvent. The step would not allow the winning fund to execute the guarantees and therefore seize their property. In fact, this is the only way for investors to wring some return from the portfolio.
Debtors like Inmobiliaria Chamartín of Carlos Cutillas with €450 million on the exposure or María Reig and Alicia Koplowitz owing €100 million each, could by the deed boycott the winner´s execution deadlines and gain possibility of refinancing their debt in a way that the investor would swap the debt for a stake in their companies.
The final bidding for the Eurohypo giant lot will be attended by the fund-bank alliances of Apollo & Santander & Merrill Lynch, Blackstone & Deutsche Bank and Cerberus & Goldman Sachs with the Lone Star & JP Morgan pair as the favourite.
Original article: El Confidencial (by Carlos Hernanz)
Translation: AURA REE