Company

For Media

Dec 13, 2012
Real Estate Sales Amounts Break the Record
The summarised performance results show that the amount of Reverta’s realised real estates in October and November 2012 has reached the mark of EUR 5.3m.In October 2012, the real estate sales amount was EUR 2.4m. 

15 real estates were sold, of which 10 were flats, 2 were private houses, and 3 were land plots.

The indices of November were even higher; the real estate sales amounts reached almost EUR 3m (EUR 2’940’924, to be precise).  Al in all, 21 real estate objects were sold – 15 flats, 2 private houses, 3 land plots and 2 commercial objects.

Until now, Reverta’s real estate sales record was that of September when 23 repossessed properties were sold for the total of EUR 1.1m.
Nov 30, 2012
Reverta Summarizes Performance Results for the First Nine Months of 2012
Reverta’s performance during the first nine months of 2012 has been in line with the approved Restructuring Plan and in some areas the company’s activities have exceeded the planned results. During the report period Reverta has repaid EUR 52.6m to the Treasury. Of that, EUR 21.1m was paid as interest on government bonds and EUR 31.5m was paid to redeem the government bonds. According to the Restructuring Plan, repayment of the State Aid principal amount was due in the second half of 2012, but Reverta was already able to make its first payment of EUR 8.7m at the end of 2011. At the same time, the first interest payment of EUR 2.1m was made, which, according to the Restructuring Plan, was not due until 2014.

Mostly, the sums available to repay State Aid were recovered because of loan restructuring and sales of separate claim rights activities. The amount of money recovered during the report period totalled EUR 85m.

Despite the signs of economic improvement as generally witnessed by the growth of GDP and improved international debt ratings during the period, the distressed assets market sector, with which we are dealing, still suffers from fragility and uncertainty. The relatively inactive real estate market, increasing competition and difficulties hindering progress of the business projects of Reverta’s clients are having a significant effect on the State Aid recovery process and performance.

Chairman of the Management Board of Reverta Christopher Gwilliam stressed: “More and more, Reverta’s work is disrupted by the inconsistencies that exist in the current laws that cover the company’s activities – repossession and management of real estates and exercising the rights of the creditor within the insolvency process. The heavy schedule of courts and sometimes ineffective judicial process are also obstacles to successful actions. As a result of all this, not only the interests of mortgage creditors and banks are involved, but also those of Latvia’s taxpayers. Therefore we continue actively to address State agencies, law enforcement institutions and the public to point out the importance of resolving these issues.”

Reverta concluded the reporting period with a EUR 65.2m loss. This loss comprises, firstly, of provisions for unsecured debts and, secondly, by the excess of interest expense over interest income. In view of the specifics of the company’s assets it is unlikely that profit can be expected in the future.

Despite the rather low interest and purchasing capacity of potential buyers during the reporting period, the total real estate sales amount in September 2012 reached EUR 1.1m, thus exceeding all previous sale results.

For further reference:

On 12th November 2012 Reverta made another payment to the Treasury in the sum of EUR 25.5m, ahead of schedule. Of that, EUR 18.1m was paid to redeem the government bonds and EUR 7.4m was paid as interest. Reverta plans to repay approximately EUR 11m more by the end of this year.

Overall, starting from 1st August 2010 till 31st October 2012, Reverta has recovered EUR 413m.

For additional infomation:
Marita Ozolina
Head of Communications and Marketing Department
Phone: 67779142 or 29287169
E-mail: marita.ozolina@reverta.lv
Nov 15, 2012
Reverta has Made Another Payment to the Treasury in the Amount of EUR25,5m Ahead of Schedule
„Mostly, these large sums necessary to repay the State Aid have been recovered thanks to well-considered loan restructurings and successful sales of certain claim rights. Nevertheless, despite the signs of economic improvement as generally witnessed by the growth of GDP and improved international debt ratings, the distressed assets market sector, with which we are dealing, suffers from fragility and uncertainty. Our achievements are also affected by the many imperfections in the existing legal system, and therefore we still have to view the future very cautiously. But, in spite of the difficult situation, it is our goal to increase the value of Reverta’s assets in the most optimum amount and to make maximum profit from their sales – so far we’ve been able to prove that we are capable of doing this,” stressed Chairman of the Management Board of Reverta Christopher Gwilliam.

According to the Plan, repayment of the State Aid principal amount was due in the second half of 2012, but Reverta made its first payment in the amount of EUR 7,8m already at the end of 2011. At the same time, the first interest payment in the amount of EUR 2,1m was made, thus getting significantly ahead of the interest repayment schedule as envisaged by the Restructuring Plan.

For further reference:
Joint Stock Company Reverta is the leading manager of distressed assets in Baltic countries. The main competencies of Reverta are loan restructuring, debt recovery and real estate management. EUR413m has been recovered from development and sales of distressed assets in the time period from 01 August 2010 till 31 October 2012.
Oct 1, 2012
The total amount collected from real estate sales deals concluded by Reverta in September 2012 has cleared the bar of EUR1m

Elīna Rudzīte, Head of Sales Unit, Real Estate Management Department, has informed that sales transactions of 23 properties repossessed by Reverta have been concluded this September for the total amount of LVL75`6278 (EUR1,1m). „I feel very glad and gratified for our accomplishment, and achievements of this month are a nice change from somewhat inactive real estate market in August,” said E. Rudzīte.  

So far May was the most fruitful month for the Sales Unit with the total of LVL70`8044 collected from sales of real estate. 

In September 2012, 5 private houses, 12 flats and 6 land plots were sold.

 

Aug 31, 2012
Reverta Announces Results of Repayment of State Investment During First Six Months of Year

During the first six months of 2012, the stock company Reverta has done well at restructuring its loans and at selling individual demand rights, and that has allowed it to repay EUR 36.6 million to the Latvian Finance Ministry ahead of schedule – this according to the company’s latest financial results.  Of that sum, EUR 12.5 million represent interest on the state’s deposit at the former Parex Bank, while EUR 24.1 million represent the basic sum of the deposit.

In addition to that sum, Reverta repaid another EUR 16.1 million to the ministry in August of 2012, once again doing so ahead of schedule.  Again, EUR 8.6 million represented interest, while EUR 7.5 million represented the basic deposit.

During the first half of 2012, Reverta devoted substantial attention to debt collection and related issues.  As a socially responsible company, Reverta has also taken active part in the working groups and discussions of professionals in the relevant sector, furthermore focusing the attention of representatives of government and law enforcement institutions on a few very important shortcomings in existing laws – ones which seriously impinge on the interests of mortgage lenders and the banking sector as such.

Reverta concluded the first half of 2012 with a planned loss of EUR 45.1 million – a loss which, as has been traditional, has been made up of set-asides for toxic loans, as well as the fact that interest expenditures have exceeded interest revenues.  It must be noted that because Reverta manages toxic assets, the true measuring stick is the amount of money that has been recovered.  The specifics of the company are such that profits are not expected for the next several years.

Reverta board chairman Christopher Gwilliam:  “Reverta’s operating results are influenced by several key factors.  First of all, there is our professional work.  Second, there are economic processes in Latvia and the rest of the world.  In the first area, I am very proud of the achievements of the company’s employees, and I wish to thank all of them.  In the second area, the crisis in the euro zone, the unstable political and economic situation in the world, and the slow recovery of Latvia’s economy – these factors are all quite logically reflected in the development of the business projects of our clients, as well as in the real estate market.  For that reason, we predict that the company will continue to generate losses as planned for the next few years.”

The number of real estate properties taken over by Reverta has increased, and during the reporting period the company focused increased attention on the economically advantageous sale of these properties.  Reverta has set up a team of real estate sales specialists, and the validity of this decision has been seen in positive trends in relation to the sale of real estate.  On June 30, 2012, the Reverta Group’s property portfolio included a few more than 1,000 units.  Of these, 900 were in the hands of Reverta and its subsidiaries, while the others were undergoing registration.  Approximately one-half of the properties, judging from their value, are flats and private homes, 23% are commercial properties, 4% are development projects, and the rest of the objects are plots of land.  Reverta’s real estate management strategy speaks to the gradual sale of all of these properties, and most of them are posted on the Reverta homepage as soon as they are obtained and registered and all of the necessary work in relation to their sale is completed.  There has also been a gradual increase in the number of transactions in which the purchase of the property is financed by a lending institution, and that may point to favourable trends in the Latvian economy.  At the same time, however, the real estate market remains fairly inactive, and buyers have demonstrated interest in only a limited number of specific real estate segments.

Aug 7, 2012
Reverta is leaving the active leasing market. More than USD240m recovered from leasing portfolioReverta is leaving the active leasing market. More than USD240m recovered from leasing portfolio

Joint-stock company Reverta has concluded a successful sale transaction of the leasing company Parex Lizing in Ukraine with the sum total USD2.8m. Thus Reverta has managed to sell the loan portfolio of its leasing companies significantly earlier than envisaged by the restructuring plan approved by the Cabinet of Ministers and the European Commission. Overall more than USD240m have been recovered from the sale of leasing companies since the end of 2008. Besides, thanks to a well-considered structure and terms of the deal, Reverta will continue receiving payments from the sale of Parex Leasing (Russia) until the end of 2013 thus ensuring the cash flow to repay the State investment.

 

 „Upon concluding the sale deal of the Ukrainian leasing company we are leaving the active leasing market for good, which is a logical step both business and strategy-wise. Having appraised and compared potential scenarios we can clearly see that gain from the sale of leasing companies will be considerably larger than that from continuation of economic activities within the established restrictions,” says Christopher Gwilliam, Chairman of the Management Board of Reverta.

 

As has been reported previously the restructuring plan of Parex banka approved by the Cabinet of Ministers and the European Commission establishes closing of leasing companies in the CIS countries by 31 December 2013 either by selling or liquidating the companies. No further investments to develop and maintain economic activities of the leasing companies are allowed. 

 

The following sales of leasing companies have been successfully completed:

 

  • Parex Lizing (Belarus, 2010): USD 8,5 m have been recovered through the sale and a total of USD25m has been recovered since 2008. According to the terms of the concluded agreement the last portion of payments was received at the beginning of 2012;

  • Parex Leasing and Extroleasing (Russia, 2011): already the first payment brought in more than USD14.5m and additional USD1.3m has been recovered since then. The payments for Parex Leasing will continue until the end of 2013. Since 2008 a total of more than USD120m has been recovered after development of the leasing portfolios of both companies;  

  • Pareks Lizing and Faktoring (Azerbaijan, 2011): USD 3.4m have been recovered following the agreement concluded in 2011 and a total of more than USD50m has been recovered from the Azerbaijan leasing portfolio since the end of 2008;

  • Parex Lizing (Ukraine, 2012): the amount of the sale deal - USD2.8m. A total of more than USD45m has been recovered from the Ukrainian leasing portfolio since the end of 2008.

 

As with previous deals several essential elements showing gain from an immediate sale were taken into account when opting for disposal of the Ukrainian Parex Lizing:

 

  1. huge administrative costs to ensure operation and control of a cross-border company;
  2. the prohibition by the restructuring plan to make investments into the development of leasing companies;
  3. legal risks arising from foreign jurisdiction and different business environment;
  4. acquiring of a significant sum of money.
Jul 30, 2012
Reverta: Resolution Adopted by Receiver Jeopardizes Recovery of State Funds worth 31.5 Million Lats

Joint Stock Company Reverta has filed a complaint with the Riga City Zemgale District Court on the resolutions adopted by Ilze Krasta, receiver of the insolvent company SIA Delfīns Partneri, as a result of which the state might lose over 31.5 million lats.

 

“The “creative” approach to interpreting the law exercised by the receiver of SIA Delfīns Partneri may result in the state losing 31.5 million lats. This makes one ask a rhetorical question: whose interest is this? This also makes one hope that the court will not let this happen,” emphasizes Christopher Gwilliam, the Chairman of the Board of Reverta.
 

The insolvency law applicable to the insolvency process of SIA Delfīns Partneri clearly defines the procedure and deadlines for reviewing creditors’ claims. Claims of Reverta’s creditors have been reviewed in accordance with the law, and effective decisions have been adopted on recognizing the claims of creditors in the amount of 31.5 million Lats. The previous attempts to deny the claims of Reverta two years ago proved to be unsuccessful because the court categorically rejected such decisions of the receiver. However, despite of the fact that the court had recognized Reverta as a creditor, another attempt to “overrule” the binding resolutions of the court is taking place. One should note that such an attempt is baldly unlawful since the Insolvency law does not grant the receiver such rights. The receiver has chosen to substantiate her decision on the provisions which are inapplicable to the insolvency process in question therefore such substantiations contradict all known fundamental legal principles. 
 

 “We have drawn the court’s attention to the baldly unlawful principles applied in the insolvency processes of SIA Delfīns Partneri and other related companies. They are aimed at avoiding settlement of liabilities towards Reverta thus jeopardizing the recovery of the state invested funds,” points out C. Gwilliam. 
 

The court and the Insolvency Administration have found material breaches in the insolvency process of SIA Delfīns Partneri previously. Several criminal actions on unlawful activity have been launched within the scope of this insolvency procedure.

Jul 19, 2012
A public appeal to eliminate the incompleteness of the Latvian legislation

A public letter by Reverta to

LR Ministru prezidentam V.Dombrovska kungam,

LR Tieslietu ministram J.Bordāna kungam,

LR Finanšu ministram A.Vilka kungam,

LR Ekonomikas ministram D.Pavļuta kungam,

LR Iekšlietu ministram R.Kozlovska kungam,

LR Tiesībsargam J.Jansona kungam,

LR Prokuratūras ģenerālprokuroram Ē.Kalnmeiera kungam,

LR Valsts policijas priekšniekam I.Ķuža kungam,

Organizētās noziedzības apkarošanas pārvaldes priekšniekam, LR Valsts policijas priekšnieka vietniekam U.Araka kungam,

LR Valsts policijas Rīgas reģiona pārvaldes Ziemeļu iecirkņa priekšniekam A.Vanaga kungam,

Rīgas Bāriņtiesas priekšsēdētājam A.Krasnogolova kungam,

LR Saeimas priekšsēdētājai S.Āboltiņas kundzei,

LR Saeimas deputātam D.Stalta kungam,

LR Saeimas frakcijas VL-TB/LNNK priekšsēdētājam E.Cilinska kungam,

VAS „Privatizācijas aģentūra” priekšsēdētajai I.Zalpēteres kundzei,

Latvijas Patērētāju interešu aizstāvības asociācijas juristei G.Vīksnas kundzei

Plašsaziņas līdzekļiem

 

Rīga, 19 July 2012 

 

On unlawful actions of mortgage debtors impeding recovery of the State funds

 

More and more often Reverta has to deal with debtors who either on their own or encouraged by others choose not to fulfil their liabilities and actively carry out unlawful actions to avoid repossession of their properties and thus cash that should enter the State budget is being misappropriated by groups of dishonest people. We are open to co-operation with any client having experienced difficulties that are honest in their efforts to overcome the hardship. At the same time we would like to appeal to the State institutions to adjust legislation in order to prevent possibility of such unlawful actions and to further recovery of the State investments in the most possible amount.

Already half a year ago Reverta, with the Association of Commercial Banks of Latvia acting as an intermediary, informed the Ministry of Justice of the Republic of Latvia on the existing situation and asked to deal with issues affecting interests of mortgage lenders as a result of unlawful actions of debtors. The company also asked for a legislation initiative to prevent incompleteness of laws and regulations. Such incompleteness allows certain groups of persons to use unlawful methods, including counterfeiting of documents, presenting of fictitious agreements and organising of libel campaigns, and to destroy the very essence of the proprietorship thus affecting both the bank sector and the lawful rights of any person whose property is being selfishly abused by other persons.

One such example of unlawful actions is encumbering of compulsorily repossessed real estate with agreements, including lease or rental agreements, under the cover of which the property is used to make profit either by opening a business there or by leasing the property to a third party. Sometimes such agreements are concluded with an aim to allow the debtor and associated persons to use other person’s property free of charge and to deny the lawful rights of the new proprietors to use and dispose of their property. All this fraud is possible only because of the lengthy proceedings and the incomplete legislation.

Reverta has acquired information on active and determined actions performed by E.Millers, O.Ņevickis, A.Poika, V.Dzintare, N.Ņemilova, G.Vīksna and others to build such unlawful schemes and to profit from them. One such example is the fact that the above persons are mostly involved in repossession processes of expensive real estates (e.g. a private house on Cēres Street, Riga, exclusive apartments on Grēcinieku Street, Riga, private houses in the exclusive resort areas of Priedkalne and Jūrmala, high-end dwelling properties) by presenting encumbering agreements with obvious signs of one origin – the same persons involved, the same style, the same grammar errors.

Reverta would like to point out to the State institutions in charge of solving such issues – State police, Prosecutor’s Office and others, that the problem has been partially studied and recognized both at the private sector and State level, as a testimony to which serves the initiative of the State Revenue Service of the Republic of Latvia to order sworn court bailiffs to inform immediately on fraudulent lease or rental agreements encountered during their official duties in order to allow the State Revenue Service investigate whether relevant tax payments have been made or not and what are the origins of such payments.

With this letter Reverta publicly addresses the Ministry of Justice, the Ombudsman and certain parliament members who have showed interest in separate cases of unlawful actions by debtors with an appeal to solve these issues according to the legislation of the Republic of Latvia and the judicature of the Supreme Court Senate and to express their viewpoint based on real facts not biased viewpoint of one of the parties. For example, some parliament members have publicly commented on the openly fraudulent case of Ganu Street 1-11 after apparently getting learned only the viewpoint of one party and totally ignoring the rights of the lawful owner of the flat – Reverta.

In addition to applying to the State Police on unlawful actions of certain persons involving counterfeiting of documents and fraud Reverta publicly calls law enforcement institutions to start active inspection of groups of persons that are building the fraudulent schemes and offering their services to debtors facing difficulties thus profiting on their account, as well as inspect lawfulness of their actions and their inter-connections in the unlawful deals.

In order to prevent the threat of the State and public interests Reverta is using all legitimate means to recover debts thus enabling recovery of the State investment.   

 

Sincerely,

 

AS Reverta CEO, Chairman of the Board,

Kristofers Gvillams

 

AS Reverta CFO, Member of the Board,

Solvita Deglava

 

AS Reverta COO, Member of the Board,

Jurijs Adamovičs

Jul 12, 2012
The Supervisory Board of Reverta has elected a new Management Board member

By the decision taken at the Supervisory Board meeting of joint stock company Reverta, Ruta Amtmane, head of the Company’s Legal department, who has proved herself as a highly qualified and responsible professional, will undertake duties of a Management Board member. Ruta Amtmane’s first day in office will be July 21, 2012 and she will also retain her current position as Head of Legal Department.

 

Ruta Amtmane’s experience is wide and includes corporate management, legal support and litigation. According to good corporate management practice in choosing company officials, and also in order to ensure continuity of Reverta’s processes, the candidate was selected from the staff of Reverta. The main criteria on which the selection of the candidate was based were: expertise, experience and the ability to work with particularly complicated and specific situations which are part of daily work in distressed asset management.

 

Ruta Amtmane jointed the team of former Parex banka, now Reverta, as Deputy Head of Legal Department in 2010 and became Head of Legal Department in 2011. Prior to that, Ruta Amtmane held leading positions in the Latvian banking sector for more than 12 years – including Head of Legal Department in DNB banka and CEO of SIA DNB Līzings.

 

The election of the new Management Board member followed the Supervisory Board’s decision to accept the resignation of Jurijs Adamovičs with effect from 20 July, 2012.  It has already been reported at the end of June that Jurijs Adamovičs has decided to undertake new professional challenges and work abroad.

Jul 5, 2012
Third blog
A few thoughts on recent developments.  We continue our efforts to recover value for the State and the taxpayer but, unfortunately, as has been witnessed recently, we come across (meet) clients or counter-parties who are, or maybe, victims themselves of a much bigger game.  Whilst we try to be sympathetic we are obliged to realise assets to return cash to the State and therefore we have to continue with recovery process which sometimes involves the repossession of occupied property.  We use our best efforts to ensure that in such circumstances the least inconvenience occurs but this does also require the co-operation of the other party.  Our policy has been, and will continue to be, that we co-operate in a sympathetic and understanding manner with those who will co-operate with us but, at the same time, we have to continue with our main goal which is to recover on assets and collect value for the State and ultimately the taxpayer.
Jul 2, 2012
Member of the Management Board of Reverta Jurijs Adamovičs is leaving the company

Reverta informs that on 20th July 2012 its Chief Operating Officer, Member of the Management Board Jurijs Adamovičs is leaving the company as he has decided to accept new professional challenges outside Latvia.

 

„I have all the reasons to be happy for what have been accomplished while being part of such a dynamic and challenging project. Step-by-step together with Reverta’s team we have achieved a number of strategic and operational goals I had set for myself in 2010 upon taking up the position of the Board member at the former Parex banka. The bank has been successfully reorganized from a credit institution into the largest professional distressed asset management firm in the Baltics. The company has acquired a new name and a new corporate identity, and we have built a dedicated team of strong professionals.  I am proud that we were able to repay the syndicated loan and to successfully conclude large and complicated deals in the CIS countries as a result of which the State and the taxpayers have recovered substantial funds,” says Chief Operating Officer of RevertaJurijs Adamovičs.

„I would like to thank all staff of Reverta and our cooperation partners, who helped and assisted us in achieving good results over last two years,” stresses Jurijs Adamovičs.

 

Michael Bourke, Chairman of the Supervisory Board of Reverta, says: „I have always had a high esteem for Jurijs’ professionalism and his contribution to the company. I would like to thank him for his commitment and accomplishments and to wish him every success in his future career.”   

 

The Supervisory Board of Reverta will deal with the replacement of this vacancy on the Management Board without delay, in the interest of continuity of the recovery operations.

Jun 19, 2012
Co-operative
We have been very busy recently here at Reverta as we have been benefitting from the approaches made by clients who previously appeared to want to avoid us. It seems that our message, our offer to meet and negotiate with our clients to find mutually acceptable resolution solutions has been heard. So, we have found several matters of significant impact on our business where we have come to an amicable agreement on a satisfactory exit strategy with our clients. In some cases our clients have been good enough to acknowledge that by co-operation we achieve not only a feasible result which will realise cash for assets, our main goal, but also helps to relieve the oppressive burden of heavy bad debt. I want to encourage more such co-operation as this is good for all concerned, the client, our business and most importantly, the taxpayers.
May 14, 2012
Reverta Repays EUR 25.2 Million to National Treasury Ahead of Schedule
The stock company Reverta (known as the Parex Bank until May 10, 2012) made another payment to the National Treasury on May 14, doing so ahead of the planned schedule. The payment was transferred in two parts and amounted to EUR 25.2 million. Of that sum, EUR 8.4 million were paid for state obligations, while EUR 16.8 million were spent on discharging state obligations.

As has been reported, Reverta voluntarily waived its license as a lending institution, and on May 15, 2012, it became the only company in the Baltic States which offers professional management of problematic assets. The company has an asset portfolio worth nearly EUR 1 billion. This change in status meant that Reverta no longer had to cover the costs related to the license of a lending institution, and that has allowed it to start its repayments much sooner than had been planned. During the first five months of this year, Reverta has paid back EUR 47.4 million, and it has also made payments on its syndicated loan at a level of EUR 233.4 million.

The money needed to repay the state aid was received by successfully restructuring loans and by selling certain demand rights. The most important transaction related to the Moscow Department Store and its linked companies. This very complicated process required more than 17 months of difficult and complicated work, but it did allow Reverta to recover the full basic sum of the loan – EUR 28 million.

For additional information:
The Parex Bank began operations on May 10, 2012, under a new brand name, Reverta. It is the only company in the Baltic States and one of the few leading companies in Eastern and Central Europe to offer professional management of problematic assets. The new brand marks out not just changes in the company’s visual identity, but also in its status in terms of changing itself from a lending institution to a professional manager of problematic assets.

 
May 10, 2012
Parex Bank Takes on New Name: Reverta
The stock company Parex Bank is implementing a new brand name today, May 10. From now on, the company which is the only enterprise in the Baltic region and one of the leading companies in Central and Eastern Europe in terms of managing problematic assets will be known as Reverta. The new brand marks out changes in the company’s visual identity, but it also represents a change in its status. The lending institution is being turned into a professional manager of problematic assets.

“Changing the brand name was not a goal in itself,” says the board chairman of Reverta, Christopher Gwilliam. “It is a logical and important step in the process of developing the company. We will use the experience and specific knowledge that we have accumulated to establish this unique company in Latvia and the Baltic region – managing problem assets. There are few specialised companies of this type in the international financial sector because, in most cases, problem assets are managed by the companies themselves, or they are divided up and sold off to investors.”

The company’s new visual identity can be seen on the Internet, because Reverta is opening its new corporate homepage today (www.reverta.lv). Users of social networks will be able to follow along with news from Reverta via its new Twitter account.

Additional information:
The brand name that has been chosen is based on the Latin word revertō, which means returning in the broadest sense of the word. The concept of returning has been chosen as the main symbol of the brand name, whether it refers to a return to basic operating goals or to the recovery of investments that have been made by the government. The symbol is revealed by the emphasised letter V, which graphically displays growth and recovery after a decline. Dark and negative trends are being replaced by light and positive ones. The emphasis on the V also emphasises the semantic link to the Latvian words for value (vērtība), management (vadība) and state (valsts).

The new brand for Reverta was created by the integrated marketing communications agency Vivax Communications Group.
 
May 9, 2012
The first post
It has been said in the past that only two things are certain – death and taxes. As I sit and write this note, I can remark that there are three things that are. The third is that (our) new company Reverta appears! Appropriately on what may, finally, turn out to be the first day of spring. The morning was fresh, the warmth coming, and the sky is studded with small white fluffy clouds against a clear blue background – exactly our company colours.

The company arises and goes forward, bolstered by this fresh day, to continue the mission to recover the optimum amount of value for the State and therefore the taxpayer. It is also a day of another celebration – the day that Victory was proclaimed in respect of WW II, and we should remember the sacrifice by all peoples of Europe to defeat the Nazism but also the renewed vigour of Europe that grew from the ruins of the old. An auspicious day for the inception of our new company all round, then.

I will keep this first commentary short so that we can just appreciate the freshness of the new beginning, but I’ll be back soon to comment on aspects of the world, especially relating to the economy and financial sector.
Apr 13, 2012
DRAFT RESOLUTIONS of Ordinary General Meeting of Shareholders of joint stock company „Parex banka” to be held on April 27, 2012

Approved in the meeting of the Management Board of JSC „Parex banka”
on 19 March 2012
and revised in the meeting of the Supervisory Council of JSC „Parex banka”
on 21 March 2012

DRAFT RESOLUTIONS
of Ordinary General Meeting of Shareholders
of joint stock company „Parex banka” to be held on April 27, 2012

On approval of the Annual report of JSC “Parex banka” for the year 2011
To approve JSC “Parex banka” Annual Report for the year 2011 submitted by the Management Board of JSC “Parex banka” and revised by the Supervisory Board. (JSC “Parex banka” Annual Report 2011 is available on http://reverta.lv/en/investors/text-table/)

On report of the Audit Committee of JSC “Parex banka” for the year 2011
To approve the report of the Audit Committee of JSC “Parex banka” for the year 2011.

On election of chartered auditor of JSC “Parex banka” for the year 2012
1. To elect PricewaterhouseCoopers SIA, reg.No 40003142793, licence No.5 as chartered auditor of JSC “Parex banka” to review Annual report of JSC “Parex banka” for the year 2012.
2. To authorise Management Board of JSC “Parex banka” to conclude the agreement with PricewaterhouseCoopers SIA on review of annual report of JSC “Parex banka” for the year 2012, by stating that amount of remuneration of chartered auditor shall be coordinated with Supervisory Board of JSC “Parex banka”.


On amendments to the Articles of Association of JSC “Parex banka”
1. Replace words “Parex banka” to the word “Reverta” in whole text of Articles of Association of JSC “Parex banka”.
2. To amend Clause 1 of Articles of Association of JSC “Parex banka”, approving its new wording as follows:
“1. Firm of the Company
1.1. Firm of the Company is Joint Stock Company “Reverta”.”
3. To state that this decision shall become effective at the moment the above mentioned amendments to Articles of Association of JSC “Parex banka” are registered with Commercial Register of Latvian Register of Enterprises.

Mar 28, 2012
Notification on convocation of joint stock company “Parex banka” Annual General Meeting of shareholders

Management Board of JSC “Parex banka” (unified registration number: 40003074590, legal address: Republikas laukums 2A, Riga, Latvia LV-1522) calls up and announces that Annual General Meeting of Shareholders of JSC “Parex banka” will take place on April 27, 2012 at 15.00 p.m. at 3rd floor conference hall of JSC “Citadele banka”, Republikas laukums 2A, Riga, Latvia.

Agenda:
1.On approval of the Annual report 2011 of JSC “Parex banka”.
2.On report of the Audit Committee of JSC “Parex banka” for the year 2011.
3.On election of chartered auditor of JSC “Parex banka” for the year 2012.
4.On amendments to the Articles of Association of JSC “Parex banka”.

Shareholder Registration will be open from 14.30 p.m. till 15.00 p.m. on the day of meeting – April 27, 2012 - at the venue of the meeting.

Shareholders have rights to participate in the meeting in person or by mediation of their legal representatives or authorised persons:

 

  • upon registration, shareholders shall present a passport or other personal identification document;
  • upon registration, representatives and authorised persons of shareholders shall present a passport or other personal identification document, and shall submit written power of attorney of the represented shareholder issued according to legislative acts, or legal representatives shall present a document certifying the authorisation.

 

Shareholders of JSC “Parex banka” can get acquainted with draft decisions as well as additional information and give their suggestions and proposals on the Agenda starting from 13 April, 2012 till 26 April, 2012 at premises of JSC “Parex banka”, Republikas laukums 2A, Riga, Latvia on all business days from 10.00 a.m. till 16.00 p.m., arranging appointment on the previous day by the phone number +371 67779178 and at Registration on the meeting day

The proposed amendments to the Articles of Association on the 4th item of the agenda „On amendments to the Articles of Association of JSC “Parex banka””:
1. Replace words “Parex banka” to the word “Reverta” in whole text of Articles of Association of JSC “Parex banka”.
2. To amend Clause 1 of Articles of Association of JSC “Parex banka”, approving its new wording as follows:
“1. Firm of the Company
1.1.Firm of the Company is Joint Stock Company “Reverta”.”
3. To state that this decision shall become effective at the moment the above mentioned amendments to Articles of Association of JSC “Parex banka” are registered with Commercial Register of Latvian Register of Enterprises.


Yours sincerely,
JSC “Parex banka” Management Board

 

Mar 28, 2012
Parex banka Changes its Activity Status and It Will be Known as Reverta
Parex banka is giving up its credit institution status and becoming a professional distressed asset manager. The sole and one of the leading Eastern and Central European managers of distressed assets will further on operate under a new brand – Reverta.

Parex banka’s reorganization into an asset management company will enable to save substantial costs related with maintenance of a credit institution license as well as reduce other administrative costs. Calculations suggest that savings will reach 0.5 million lats a year. As a result of status change Parex will no longer be subjected to regulations applicable to the activity of credit institutions. Thus the state will not have to increase Parex banka’s capital as provided in the bank’s restructuring plan. Parex banka’s change of status will enable the state to save more than 160 million lats

“Change of status and brand name, along with the acquired experience and unique know-how, will enable to maintain efficient and professional focus on the company’s main areas of activity. The brand name was acquired from Latin word “revertō” which means “return” in the broadest sense of the word. We have chosen returning as the main symbol of the new brand for a twofold reason – returning back to the core purposes of activity or returning the state its investments,” explains Christopher Gwilliam, Chairman of Parex banka’s Board.

By giving up its credit institution status, Parex banka has made an unprecedented step in the Baltic financial sector. Starting from 1 August 2010 Parex banka no longer provides services which are characteristic to a commercial bank. Therefore giving up of a credit institution license will enable to work professionally with the status that corresponds with the company’s core activity. The new status allows the company to optimize and improve its activity, and focus all of its know-how and energy on the main fields of business: efficient loan restructuring, debt recovery and management of overtaken real estate.

The new name of Parex banka has to be approved at the Shareholders Meeting on 27 April 2012.
Mar 28, 2012
Notification on convocation of joint stock company “Parex banka” Annual General Meeting of shareholders

Management Board of JSC “Parex banka” (unified registration number: 40003074590, legal address: Republikas laukums 2A, Riga, Latvia LV-1522) calls up and announces that Annual General Meeting of Shareholders of JSC “Parex banka” will take place on April 27, 2012 at 15.00 p.m. at 3rd floor conference hall of JSC “Citadele banka”, Republikas laukums 2A, Riga, Latvia.

Agenda:
1. On approval of the Annual report 2011 of JSC “Parex banka”.
2. On report of the Audit Committee of JSC “Parex banka” for the year 2011.
3. On election of chartered auditor of JSC “Parex banka” for the year 2012.
4. On amendments to the Articles of Association of JSC “Parex banka”.

Shareholder Registration will be open from 14.30 p.m. till 15.00 p.m. on the day of meeting – April 27, 2012 - at the venue of the meeting.

Shareholders have rights to participate in the meeting in person or by mediation of their legal representatives or authorised persons:

  • upon registration, shareholders shall present a passport or other personal identification document;
  • upon registration, representatives and authorised persons of shareholders shall present a passport or other personal identification document, and shall submit written power of attorney of the represented shareholder issued according to legislative acts, or legal representatives shall present a document certifying the authorisation.


Shareholders of JSC “Parex banka” can get acquainted with draft decisions as well as additional information and give their suggestions and proposals on the Agenda starting from 13 April, 2012 till 26 April, 2012 at premises of JSC “Parex banka”, Republikas laukums 2A, Riga, Latvia on all business days from 10.00 a.m. till 16.00 p.m., arranging appointment on the previous day by the phone number +371 67779178 and at Registration on the meeting day

The proposed amendments to the Articles of Association on the 4th item of the agenda „On amendments to the Articles of Association of JSC “Parex banka””:

1. Replace words “Parex banka” to the word “Reverta” in whole text of Articles of Association of JSC “Parex banka”.
2. To amend Clause 1 of Articles of Association of JSC “Parex banka”, approving its new wording as follows:

“1. Firm of the Company
1.1.Firm of the Company is Joint Stock Company “Reverta”.”

3. To state that this decision shall become effective at the moment the above mentioned amendments to Articles of Association of JSC “Parex banka” are registered with Commercial Register of Latvian Register of Enterprises.


Yours sincerely,
JSC “Parex banka” Management Board

Mar 15, 2012
FCMC supports Parex banka’s request to voluntarily give up the credit institution licence; last formalities removed
Today, 15 March 2012, the Financial and Capital Market Commission (FCMC) supported Parex banka’s request to voluntarily give up the credit institution licence, and took a favourable decision on the licence cancellation. Thus the last formalities that prevented from the status change are removed and according to the decision of the shareholders’ meeting the company may now undertake all actions necessary.

“This is a desired and significant decision that will enable reorganization of Parex banka into a professional distressed asset management company – the only one in the Baltic region. Status change is important because of two main reasons: firstly, we will be able to do our core business more efficiently and secondly, administrative expenses related to maintenance of the credit institution licence will no longer be applicable,” says CEO of Parex banka Christopher Gwilliam.

“At the same time I want to remind that the status change will have no impact on the amount and structure of the existing obligations, and we will continue to recover state investments with all legitimate means,” emphasises Christopher Gwilliam.

Parex banka has repeatedly specified that the decision to change the status voluntarily has been taken after comprehensive assessment of the potential operational models of the bank. It was taken into account that since August 1, 2010 Parex banka has ceased to render such services characteristic of commercial banks as crediting and servicing deposits. At the moment, Parex banka is mainly focused on development of the distressed assets: loan restructuring, debt recovery and real estate management. Therefore it is not necessary to maintain the status of the bank in order to reach the bank’s objective, which is recovery of state investments. By giving up the licence Parex banka will no longer need to meet several requirements binding on credit institutions, e.g. capital adequacy ratio requirements.

One of the obstacles to overcome was Parex banka’s obligations to syndicated lenders that were settled in May 2011 without additional support from the state, as well as obligations to private depositors. The latter were also settled from funds of Parex banka.

Additional information:
On December 28, 2011 the General Meeting of Parex banka shareholders passed a resolution on giving up the credit institution licence. It was also decided that the Management Board of Parex banka will undertake all actions necessary to implement the status change, including asking permission from FCMC.

On 22 November 2011 the Cabinet of Ministers supported the operational model of Parex banka which envisaged the status change. Along with other essential factors it was marked that because of status change it will no longer be necessary to capitalize state deposits as the Restructuring plan had established.
Feb 29, 2012
In 2011, Parex Bank continued to recover state investments, substantially reduced losses
The unaudited financial results of the stock company Parex Bank for 2011 show that the bank has successfully continued to recover the finances which the state invested in its rescue and has also substantially reduced its losses. Since August 1, 2010, the Parex Bank has recovered more than LVL 220 million, including LVL 158 million during the reporting period. Most of the money was used to repay the bank’s syndicated loan of LVL 164 million, with another LVL 7 million being repaid to the Latvian Finance Ministry ahead of schedule. Shortly after the end of the reporting period, the Parex Bank repaid another LVL 8 million to the ministry – five million in principal and three million in interest.

“These results show that over the course of a year-and-a-half, the Parex Bank has turned into a high-level and professional company which manages problematic assets. Our powerful team has achieved commendable results working with complicated multimillion projects under extraordinary circumstances,” says Parex Bank board chairman Christopher Gwillia.

“The results don’t show all of the work that we did in 2011,” Gwilliam continues. “Much of the fruit of our labours will be seen later. Restructuring of loans is a complicated and very time-consuming process. We are also in no hurry to sell those assets with respect to which we expect an increased value in future.”

Because of carefully considered and cautious operative and financial operations in 2011, the Parex Bank managed to substantially reduce losses related to problematic assets – LVL 70.3 million in 2011, as compared to LVL 163.9 million in 2010. As was the case in the past, the losses during the 2011 reporting period were based on two major areas of expenditures – interest on the state’s deposit and the subordinated capital, as well as set-asides to reduce the value of problematic assets. The bank’s restructuring plan does not speak to achieving a level of profitability because of the specifics of the Parex Bank’s operations as a manager of problematic assets. The fact is that the bank’s portfolio only contains assets with long-lasting repayment problems. The bank has insisted on several occasions that the only measuring stick to evaluate its operations is to look at the amount of money that has been recovered.

In pursuit of its missions, Parex Bank concentrated its work in three major directions during the reporting period – restructuring of loans, collection of debts and management of real estate. During 2011, the bank concluded several important, but very complicated loan restructuring transactions which allowed the bank to fully recover the millions in loans which it had issued in the relevant cases.

The most important achievement for Parex Bank in 2011, however, was the repayment of the state-guaranteed syndicated loan of LVL 164 million, which the bank managed to do by itself and without any additional aid from the state. This protected state and taxpayer interests and fully resolved Parex’s high-priority and essential obligations.

Also during the reporting period, the Parex Bank launched the major project of selling its subsidiary leasing companies in the CIS. The first results were achieved in late September 2011, when the bank concluded an excellent deal on selling its Russian subsidiary, Parex Leasing and Extroleasing. This meant that Parex withdrew entirely from the Russian leasing market. The first payment allowed the Parex Bank to recover more than USD 14.5 million, and until the end of 2013, it will continue to receive payments from the gradual sale of the problematic assets that were in the leasing company’s portfolio. In October, in turn, the sale of Pareks Lizinq and Faktorinq in Azerbaijan was completed. This meant the recovery of another USD 3.4 million.

Effective operations have also allowed the Parex Bank to expand its real estate portfolio quite significantly – to more than 800 units at the end of the reporting period. These are flats and private buildings of various categories, as well as a wide variety of commercial facilities in the Baltic States. During 2011, the bank engaged in professional management of the real estate that it had taken over, particularly focusing on the preservation and increase of the value of such assets so that they can be sold advantageously.

On November 22, 2011, Latvia’s Cabinet of Ministers approved a new model for Parex Bank operations and a change in its status. On December 28, an emergency shareholder meeting was held, and shareholders agreed to waive the bank’s license. The board was ordered to prepare for the successful change in the bank’s status. This is a logical and carefully considered step, given that Parex Bank has not been providing classical banking services since August 1, 2010. After the change in status, the bank will continue to work on problematic assets, loan recovery, and the preservation and improvement of the value of assets. The structure of Parex Bank assets and obligations will be preserved, not least in terms of client obligations. The new model for the bank is to be implemented after the Finance and Capital Markets Commission gives its blessing to it.
Feb 23, 2012
Settlement of Liabilities of SIA Lielupes nams towards the bank as a result of successful loan restructuring
The final principal amount and interest payment was received today, on 23 February 2012, from SIA Lielupes nams - one of the largest clients of the Baltic Loan Restructuring Department of Parex banka (now - Reverta). This is a success story built upon effective cooperation between the bank and the client, by finding mutually acceptable solutions and ensuring a successful loan restructuring process. As a result, SIA Lielupes nams has fulfilled all of its loan liabilities towards Parex banka, also including the repayment of the principal sum of the loan in the amount of more than 14 million euro. It should also be emphasised that, for the entire term of the agreement, the client has also provided for the monthly interest payment in full.
Feb 15, 2012
Parex Banka Repays Over 8 Million Lats to the State
Joint Stock Company Parex banka has repaid the deposits made by the State in the amount of 8 million Lats to the Ministry of Finance earlier than anticipated in the restructuring plan. The repaid sum included principal sum of 5 million Lats and 3 million Lats of interest for using State aid. Presently the State has recovered as much as 75 million Lats from Parex banka and received 102 million Lats in interest payments for using aid granted by the State.

Parex banka repaid 7 million Lats to the State in year 2011. Since 1 August 2010 Parex banka has recovered over 220 million Lats from restructuring distressed debt. The majority of the recovered assets were channelled for repayment of the syndicated loan worth 164 million thus relieving tax payers and the State budget from substantial loan liabilities.

Additional information:
Parex banka’s
activity is concentrated in three main directions – loan restructuring, debt recovery and real estate management. Real estate acquires an increasing proportion on Parex banka’s agenda – mostly this involves alienation, taking over and management of property. In order to acquire the necessary funds for repayment of investments made by the State Parex banka plans to sell real estate at the most beneficial price as the situation in the real estate market improves. Parex banka’s real estate portfolio contained over 800 objects as of 30 September 2011.
Feb 14, 2012
“Parex banka” recovers 27,8 million euro from “Универмаг Москва” deal
Joint Stock Company Parex banka has recovered EUR 27,8 million by selling their right to demand from the department store Универмаг Москва and related companies. Thus the Bank has successfully recovered the remaining principal amount from the complex exposure in full. It took more than 17 months of professionally hard and demanding work. Универмаг Москва is a significant object located in the centre of Moscow with a great potential however due to the long-lasting disagreement and conflict between the shareholders it has been impossible to benefit from its potential. As a result of mutual disputes between the shareholders, Parex banka has been involved in several complex proceedings.

Jurijs Adamovičs, member of AS Parex banka Executive Board emphasises: “Our major task is loan restructuring and debt recovery, and we have reached our target within this project fully. We are very satisfied as Универмаг Москва was one of our most complex projects which demanded a lot of energy and work. Methods that some stake holders used to protect their interests were rather unfavourable. Our success is a proof that out team is capable of solving specific and extraordinary situations.”

The right to demand from Универмаг Москва and the related companies has been sold to CIS investors. Terms of the agreement forbid disclosure of the buyer’s identity.

Additional information:
In 2011 Parex banka pleaded with the Ambassador Extraordinary and Plenipotentiary of Latvia to the Russian Federation regarding the proceedings related to Универмаг Москва in order to stop further legal discrimination of Parex banka as resident of Latvia by the Russian courts. Among other things Parex banka pointed out that that breach of internationally recognized principles would substantially harm bilateral relations of both countries.
Feb 9, 2012
Completion of Department Store Moscow («Универмаг Москва») transaction triggers the recovery of 28 million euro
On 9 February 2012, Parex banka (now - Reverta) has recovered 28 million euro by selling its claim rights to Department Store Moscow and its affiliates. Successful closing of this large-scale and highly complex transaction resulted in the bank’s ability to fully recover the remainder of the principal amount of the loan. As emphasised by Yuri Adamovich (Jurijs Adamovičs), Board Member of Parex banka: “We have a great sense of satisfaction in accomplishing this because Department Store Moscow has been one of our most complex projects which took immense energy and work resources. Also the methods, employed by certain involved parties for protection of their rights, were far from scrupulous. The closing of this transaction clearly demonstrates the abilities of our team to resolve specific and extraordinary situations.”



Implementation of the said project took over 17 months of professionally complicated and hard work. Department Store Moscow is a significant object in the very centre of Moscow with great potential, but, nevertheless, protracted disagreements and conflicts of the shareholders made it practically impossible to benefit from using this potential. As a result of mutual disputes of the shareholders, Parex banka also got involved in a number of complicated legal proceedings.
Jan 4, 2012
Over 21 million U.S. dollars recovered within two months from the portfolio of CIS countries
During the last two months of 2011, Parex banka (now - Reverta) managed to regain over 21 million U.S. dollars within the scope of the credit portfolio of CIS countries, out of which 11 million were received in November and over 10 million U.S. dollars – in December. Over 460 million U.S. dollars in total has been received from the credit portfolio of CIS countries since the end of 2008, when the state became the largest shareholder of Parex banka.