NON-PERFORMING LOANS

Opportunity
A European Textile Company couldn’t attend their loan payments, as the company started an international expansion and it didn’t work as planned. The loans became non-performing, the banks started claiming the debt and leading the company nearly into bankruptcy.

Added Value
A SPV bought the non-performing loans from the banks with a considerable discount, converted the debt into equity and supported the company with an active restructuring.

Investment  Result
The SPV did get his initial investment for the acquisition of the non-performing loans back in less then 12 months, and sold the new equity in the company to original shareholders with a multiplier of  2 in less than 3 years