Deloitte Romania and Reff & Associates, member of the Deloitte Legal global network, advised Patria Bank in the sale of a portfolio of non-performing loan (NPL) receivables with a nominal value of approximately RON 245 million comprising of unsecured consumer loans, to InvestCapital LTD, a company part of KRUK Group.
“For the first time in its recent history and in line with this year’s business plan, Patria Bank has finalized the sale of a first tranche of its NPL portfolio and is in the process of disposing of another tranche. The assistance and expertise of Deloitte Romania and Reff & Associates have a significant contribution to the success of these transactions, aiming to improve the short-term performance of the bank in its recent path towards profitable growth,” said Daniela Iliescu, member of the Board of Directors of Patria Bank.
Deloitte Romania’s financial advisory team has provided comprehensive assistance in structuring the transaction, preparing the data tapes, planning and coordinating the sale process. The team was headed by Radu Dumitrescu, Transactions Support Services Partner, while Bogdan Mazilu, Assistant Director, coordinated financial assistance services with the support of consultants Crina Ciudin and Radu Constantin.
“We hope this project will be the signal a new beginning in a market that deadlocked in the past year and which needs to adapt to legislative changes of significant impact. It is important to be aligned to the European trends, given the harmonized regulatory framework that can uphold a sound financial system,” said Radu Dumitrescu, Transactions Support Services Partner, Deloitte Romania.
Reff & Associates has been involved in all the stages of the competitive bid for selecting a buyer, from the preliminary structuring phase, to the drafting of the auction assignment of loan receivables agreement proposed by the bank to the potential investors, as well as throughout the negotiation sessions. The law firm will continue to assist Patria Bank until the completion of post-transfer formalities. The project was headed by Andrei Burz-Pinzaru, Managing Partner, Reff & Associates, and coordinated by Andreea Serban, Managing Associate, with the involvement of Lorena Rosia (Butusina), Senior Associate, and Diana Rotaru, Associate.
“In my view, the transaction is important not only for our firm, but also for the local banking system, which, despite an unfavorable legislative landscape, must keep the NPL ratio in line with the European Banking Authority and the National Bank of Romania’s recommendations. Even during 2018, when the local distressed debt market froze because of this unfavorable legislative climate, Reff & Associates advised clients throughout the disposal of non-performing loan portfolios with an aggregate face value of EUR 300 million,” said Andrei Burz-Pinzaru, Managing Partner at Reff & Associates, member of Deloitte Legal network.
Deloitte Romania and Reff & Associates are amongst the most active advisors on the Romanian NPL market, with extensive experience in such engagements. During 2014-2018 Reff & Associates assisted banks, investors and debt collection entities in selling or acquiring distressed debts portfolios with an aggregate face value around EUR 6 billion.
Deloitte provides worldwide audit, consulting, legal, financial advisory, risk advisory, tax and related services to public and private clients spanning multiple industries. Deloitte serves four out of five Fortune Global 500 companies through a globally connected network of member firms in more than 150 countries and territories bringing world-class capabilities, insights, and high-quality service to address clients’ most complex business challenges. Deloitte’s goal is to make an impact that matters through its approximately 286,000 professionals.
Deloitte Romania is one of the leading professional services organizations in the country providing, in cooperation with Reff & Associates, services in audit, tax, legal, consulting, financial advisory, risk advisory, business processes and technology services and other related services with more than 1,200 professionals.
With a team of over 70 lawyers, Reff & Associates is a leading law firm in Romania and one of the most active in assisting clients in complex M&A transactions, real estate, banking financing and transactions with loans portfolios.