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Sector´s Acid Test: “Hercules Project”

28/04/2014 – Expansion

Along with CaixaBank´s “Flanders Project“, foreign banks and funds pay special attention to the “Hercules Project” of Catalunya Banc, compound of €7 billion in non-performing loans.

The operation is being advised by N+1 and Baker & McKenzie and it is key for two reasons. Firstly, because it may influence Catalunya Banc´s future tender and secondly because the credit portfolio was one of the greatest pitfalls for Spanish banks to take over the nationalized entity in the two last auction attempts.

This time, Spain´s Fund for Banking Restructuring (or Frob by its acronym in Spanish) will combine defaulting mortgages with the rest of the business. If “Hercules” remains unsold, the tender of Catalunya Banc may turn out to be extremely difficult and it would hamper future sales of other banks.

 

Original article: Expansión

Translation: AURA REE