Thanks to the efficient management in the existing difficult market situation, Reverta’s performance during 2012 has been in line with the approved Restructuring Plan and the Company has managed to meet the key target of the year repaying to the Treasury EUR 89.7m. Of that, EUR 28.5m was paid as interest on State Aid, and EUR 61.2m was used to repay the principal amount of the State Aid.
Overall, since 01st August 2010, EUR 100.5m has been repaid to the Treasury. In addition to that, in 2011, Reverta also repaid State guaranteed syndicated loan in the amount of EUR 234m.
“The results achieved clearly show the suitability of the chosen strategy and the ability of Reverta to achieve optimum results in complex and even extreme situations. It should be noted that repossession and sales of real estates are taking up a more and more important part of Reverta’s business, but the general macroeconomic situation, the purchasing capacity of people, deficiencies of certain laws and especially lengthy litigations are considerably influencing the performance of the Company. The lengthy litigations make it impossible to sell pledged properties in a timely manner. As a result, quite often, the value of the repossessed objects has decreased even by 70%,” says Christopher Gwilliam, Chairman of the Management Board of Reverta.
The limited possibilities to realise distressed assets affects the level of the Company’s losses. Reverta ended the year with a EUR 137.7m loss, of which, 77% was related to losses in values of loans. Losses were already envisaged by the Restructuring Plan for the whole duration of the Company. It should be noted that the measure of the activities of Reverta is the amount of funds recovered – according to the specifics of the Company’s activities no revenue is to be expected, only recovery of funds in most optimum amounts.
At the end of 2012, the repossessed real estate portfolio had increased up to more than 1000 items. Notwithstanding the many negative factors, overall Reverta has recovered EUR 107m from its distressed assets portfolio by the end of the reporting period, and more than EUR 419m since August 2010.
Additional information:
Reverta is the largest distressed assets manager in Baltic countries. The main competencies of the Company are loan restructuring, debt recovery, and real estate management. Reverta has recovered more than EUR 450m from development and sales of distressed assets between 01st August 2010 and 28th February 2013.
To learn more about Reverta, please visit the Company’s web page: www.reverta.lv.
For additional information contact:
Marita Ozolina
Head of Communications and Marketing Department
Phone: 67779142 or 29287169
E-mail: marita.ozolina@reverta.lv
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