BVA to sell R$ 550 million portfolio of defaulted credit in auction

BVA Bank, which filed for bankruptcy in 2014, plans to sell further R$ 550 millions in NPL later this year.
According to Eduardo Seixas, partner from the business restructuring consultants Alvarez & Marsal, the auction will take place in October and has set an R$ 70 million as minimum bidding value.
Last year, BVA sold an R$ 2,3 billion NPL portfolio to Enforce, the credit recovery arm of BTG Group, for R$ 211 million. A sales price that was 14% below the minimum bidding value set up for that auction, which registered 80 bids.
«We believe that this time the completion between investors will be even stronger», Seixas said. «Its smaller dimension should attract an even higher number of potential buyers and there is also a higher percentage of property backed loans».
Most of these loans were granted to average sized companies, according to Seixas, that also revealed that the company built a data room were the potential buyers can access to further details.
According to Alvarez & Marsal, since 2014 the sales of NPL assets have already brought around R$ 450 million to the Bank’s creditors. The goal is to sell all the bank’s assets until the end of the year.

Original Story: Bloomberg | Felipe Marques
Photo: Morrison
Translation and Edition: Prime Yield