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Novo Banco to sell off €3.3 billion of bad debt

novobancoshinylogoNovo Banco has started the sale process for the largest portfolio of non-performing loans ever released in Portugal.

Bain, Cerberus and KKR in the race for the €3.3 billion of bad debt as the US-owned bank continues to clear its balance sheet.

Novo Banco’s ‘Projeto Nata 2’ already has attracted several potential buyers for discounted debt with the sale due to close in the third quarter.

Under the strong criticism and doubts regarding the processes of selling these problematic assets inherited from BES, Novo Banco already has launched its sale of the largest bad credit portfolio ever sold in the domestic market.

The sale operation is being led by Alantra, a Spanish company that already has advised Novo Banco in similar transactions.

The portfolio is of 1,000 business bad debts with only 30% of these loans having some sort of collateral. The remaining debts have no assets backing them.

At this stage, the bank is receiving non-binding offers from investors by the end of this month. Interested parties have access to a file with detailed information about the portfolio.

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Comments  

-1 #4 Not Surprised 2019-03-23 15:06
Quite apt the name of the project .... ‘Projeto Nata 2" ... Some "Creaming off" going on here ...Quoting Mike Williams:
Over the last few years we have repeatedly read of unsecured lending by Portuguese Banks and assumed it was just a small rogue element; here is the proof that it was only ever an embedded "Friends and Family" management strategy to be lending the savings of other clients to a favoured few. With drastic results as we see now - 700 high value business loans with zero security! How many of the remaining Novo Banco small savers transferred from BES have been in long term lock-in since the day Novo Banco was formed? Bulking up the Novo Banco bank balance sheet but still with no idea of when they can get their money out to a more secure bank.
-1 #3 Not Surprised 2019-03-23 15:02
What do you expect from a Vulture Fund that Lone Star is ... Skipping off into the sunset with all our taxpayers money and a bonus of a bad debt sale to boot ... It will be gone altogether once stripped of any value ...
-1 #2 nogin the nog 2019-03-21 12:11
Quoting Mike Williams:
Over the last few years we have repeatedly read of unsecured lending by Portuguese Banks and assumed it was just a small rogue element; here is the proof that it was only ever an embedded "Friends and Family" management strategy to be lending the savings of other clients to a favoured few. With drastic results as we see now - 700 high value business loans with zero security! How many of the remaining Novo Banco small savers transferred from BES have been in long term lock-in since the day Novo Banco was formed? Bulking up the Novo Banco bank balance sheet but still with no idea of when they can get their money out to a more secure bank.

HMM.
Mike it is criminal what has transpired here.
Let see what your hedge fund does when the state stops giving it money..
+3 #1 Mike Williams 2019-03-21 08:16
Over the last few years we have repeatedly read of unsecured lending by Portuguese Banks and assumed it was just a small rogue element; here is the proof that it was only ever an embedded "Friends and Family" management strategy to be lending the savings of other clients to a favoured few. With drastic results as we see now - 700 high value business loans with zero security! How many of the remaining Novo Banco small savers transferred from BES have been in long term lock-in since the day Novo Banco was formed? Bulking up the Novo Banco bank balance sheet but still with no idea of when they can get their money out to a more secure bank.

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