In accordance with the decision of the Cabinet of Ministers of 15 December 2014 on the restructuring of liabilities towards the European Bank for Reconstruction and Development, the latter ended its participation in Reverta on 7 March 2017. Henceforth, the Latvian Privatisation Agency has a 96.89 % shareholding in Reverta and other shareholders have 3.11 % of shares.
On 29 May 2017, annual general meeting of Reverta’s shareholders adopted a decision to commence the liquidation of Reverta on 1 July 2017 as stipulated by the Restructuring Plan.
On 20 June 2017, Reverta completed evaluation of binding offers and approved a portfolio buyer as recommended by the financial advisor KPMG Baltics. In line with usual procedures, Reverta submitted the offer of the potential investor to the Cabinet of Ministers.
On 22 June 2017, Reverta signed a loan portfolio sale agreement with Gelvora. The selected investor is an international company which is part of a Swedish financial holding Marginalen AB.
On 1 July 2017, Reverta’s liquidation process was commenced. In accordance with the Commercial Law of the Republic of Latvia, Reverta’s management board member becomes a liquidator of the company and has to ensure termination of the operation of the company as planned.
In 2016 Reverta continued to successfully carry out its tasks. The audited financial statements show that between August 2010 and the end of 2016 Reverta had recovered EUR 740 M or 66 per cent of all distressed assets left to Reverta after the takeover and split of Parex Bank.
On 5 August 2016 Reverta signed an agreement with KMPG Baltics for receiving expert’s advice on the sales process of its loan portfolios.
In accordance to the audited financial statements of 2015, since 1 August 2010 the State has received from Reverta a total of EUR 610.8 M in the form of various payments, EUR 366.6 M of which have been paid directly to the State Treasury. In addition to this, Reverta has also repaid term deposits, interest on subordinated loan capital, and other substantial payments. Overall, during its operation Reverta has recovered EUR 666.2 M from the restructuring of distressed assets, sales of bonds, and disposal of real estate properties.
Reverta concludes Year 2014 with strong performance – since 1 August 2010 Reverta has recovered EUR 604.9 M through the restructuring and sales of distressed assets. Overall, the State has received from Reverta more than EUR 511.7 M.
Reverta’s audited financial results for the year ended 31 December 2013 show that the company has been successfully operating in line with the approved Restructuring Plan and since 1 August 2010 has recovered more than half a billion euros (EUR 511.7 M) from the restructuring of the distressed assets portfolio. The repayment of funds to the State Treasury has been commenced one year earlier and in larger amounts than stipulated by the Restructuring Plan.
On May 8 2012 sees a turningpoint in Parex banka’s activities: after the scheduled change of status and name change, the bank begins its work as a professional distressed asset management company, under the new brand Reverta. With assets under management amounting to circa one billion euros, Reverta remains one of the largest distressed asset management companies in the Baltic region.
On March 15, 2012 the Financial and Capital Market Commission approves the request by Parex banka and cancels the bank’s credit institution licence. The change in the company’s working model is a consistent and well-thought-out step considering that Parex banka has not been providing traditional credit institution services since August 1, 2010.
On December 28, 2011 the Parex banka shareholders meeting passes a resolution on the resignation of its credit institution license. Parex banka’s board member, Jurijs Adamovičs, gives a speech to the bank’s shareholders to point out the following: “Today’s shareholders meeting is special. It marks the beginning of a new path in the history of Parex banka and starts the process of the bank’s transformation. The status change will enable us to concentrate the bank’s resources and focus on our main business — the management of distressed assets.”
As a result of its 1 August 2010 restructuring, Parex banka begins its work as a “resolutions bank” with the aim of recovering state assets that have been deposited in its accounts. At that time, servicing accounts and deposits, granting loans, and other basic banking services were discontinued. From that point on, the only measure of Parex banka’s work became the volume of assets it recovers.
The global financial crisis of 2008 also affects Parex banka — the largest Latvian bank with national capital which was established in 1992 — and it is forced to begin insolvency procedures. Having assessed its potential influences on the Latvian banking sector and the national economy in general, on 8 November 2008 the Cabinet of Ministers passes a resolution to purchase the controlling stake in Parex banka. The State, as represented by the Privatisation Agency, becomes the largest shareholder in Parex banka. A portion of Parex banka’s shares are later bought by the European Bank for Reconstruction and Development (EBRD).