11/06/2014 – Bloomberg
Sources close to KKR & Co., led by billionaires Henry Kravis and George Roberts, said the owners held several meetings with Spanish banks with view to facilitating transfers of troublesome assets from banking balances to funds eager to acquire them. KKR offered acquisition of debt of 5-6 firms at risk of bankruptcy and carry out processes which would allow the companies to be viable again.
The IMF encouraged Spanish entities to find ways to help the companies which are solvent but cannot crawl out from the debt and therefore contribute to the overall improvement in the country´s bothered economy. The solution proposed by KKR would save the banks´balance sheets.
In total, the indebted firms have jointly €138 billion of loans, out of which two thirds are labelled as “non-” or “sub-performing”, as Alvarez & Marsal Inc. told.
Spain mended several anti-bankruptcy regulations in March in order to make it easier for the companies to dogde insolvency through debt restructuring. Also, the steps to be taken by KKR and alike funds could enhance job creation and thereby a decrease in the terrifying unemployment rate in Spain.
Original article: Bloomberg (by Charles Penty & Sharon Smyth)
Summary: AURA REE