Catalunya Banc Speeds Up First Credit Sale Before Tender

11/03/2014 – Expansion

Catalunya Banc pursues at selling rapidly the first large non-strategic asset sale before it is put up for auction. The stake is €1.600 million in unpaid consumer, SMEs´ and big companies´loans embraced in so-called “Cava Project”.

The process has entered the final stage. Catalunya Banc hired KPMG to conduct the sale. The bank, controlled by the Frob (the Restructuring Fund), foresees earning between 4% and 5% of the portfolio nominal value, i.e. around €75 million.

Usually, vulture funds pay about 3% for this kind of portfolios, however greater competition among them might raised the price. The “Cava Project” initially evoked widespread interest among the funds but later many of them withdrew for lower price opportunities. Despite that, the price cannot be cut as a part of the credits is still outstanding and the rest (provisioned for 100%) have expired little time ago.

The transaction could be compared to the botched trial of the Frob to sell €4.000 in unpaid credits of NCG simultaneously with the tender of the bank.

In case of Catalunya Banc, the €1.600 million amount is divided among three subportfolios: one consists of failed consumer loans (€600 million), another of the same volume of credits granted to SMEs and the last one of €400 million.

There are several funds on the horizon as potential buyers of the portfolios: Elliot, Cerberus, Oaktree, Lindorff, Marathon, D. E. Shaw, AnaCap and JBCapital Markets. (…).

 

 

Original article: ExpansiónPro (Jorge Zuloaga)

Translation: AURA REE

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