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Dec 17, 2014
Reverta and financial institutions draw attention to malicious insolvency system, not just isolated cases

Several financial institutions of Latvia – Swedbank, SEB Banka, Norvik Banka, Danske Bank and Reverta – sent out over 600 copies of a publication summarising the most scandalous insolvency cases. The financial system entities are concerned about the slow pace at which the government is fulfilling its promises to improve the legal environment in Latvia, as well as about statements by several officials calling systematic malicious insolvency procedures merely isolated cases and failing to address them properly.

The material published today by four commercial banks and Reverta looks at seven of the most scandalous cases of malicious insolvency in recent history: Delfīns un Partneri; Tērbatas Biznesa Centrs/ Gvano; Winergy; DAM Property Investments, Arts Plaza/ Soranus; Ceturtā Planēta/ Troja Immobilien; Hotel “Majori”/ V.Barinovs. These cases alone have caused losses to the financial system worth EUR 174,25 million. However, the given examples, which have been publicly discussed due to scandalous and mysterious court proceedings, are merely the tip of the iceberg and are by no means the only ones.

The money lost in these malicious insolvency cases or embezzled by fraudsters could be used for home loans for 5000 young families or for the construction of 10 medium sized factories. As a result of these cases of fraud, several tens of millions of euros have bypassed the budget in taxes. In essence, this money has been stolen from the state – it could have been invested in development, salaries for teachers and medics or health care.

The financial institutions are at a loss as to why the both the former and the current ministers of justice are calling malicious insolvency to be isolated cases, even though it is clear to anyone who has looked into it and is aware of the bigger picture, that it is a system created by fraudsters, dishonourable insolvency administrators, auditors and judges. Another problem is publicly cited in relation to malicious insolvency cases – threats to national security.

The financial system, as well as most businesses considering investing in Latvia expect decisive action on the part of law enforcement authorities and those responsible for the efficient and fair functioning of the judicial system. The same names have been coming up for years, but significant changes are yet to be seen. Concrete action is needed demonstrating Latvia’s ability to ensure fairness and the rule of law. In the name of public interests this hotbed of dishonesty must be eliminated and those involved – punished, prohibiting them from further work in the judicial system.


For additional information, please contact:

Marita Ozoliņa
Head of Communication and Marketing Department
JSC “Reverta”
Marita.Ozolina@reverta.lv


Osvalds Zebris
Head of Communications
JSC “Norvik Banka”
osvalds.zebris@norvik.eu


Vineta Savicka
Head of External Communication
JSC “Swedbank” vineta.savicka@swedbank.lv


Mārtiņš Panke
Head of Corporate Communication
JSC “SEB Banka”
Martins.Panke@seb.lv


Ieva Zauere
Head of Communications
JSC “Danske Bank”
ieva.zauere@danskebank.lv

Aug 29, 2014
Reverta: EUR 66.7m Paid to the State Treasury this Year

The performance of Joint-Stock Company Reverta in the first half of 2014 has been significant – a total of EUR 31m has been paid to the State Treasury. Overall, Reverta has already repaid EUR 66.7m during this year and a significant portion of the payment has been done ahead of schedule.
As a result of successful RE sales and loan restructuring, Reverta has recovered EUR 38.7m during the first half of 2014 and more than EUR 550m since 1 August 2010.
Solvita Deglava, Chairperson of the Management Board of Reverta, points out: “This is a significant achievement as our main objective is to fulfil our obligations towards our main creditor, i.e. the State Treasury. Nevertheless, we have to be realistic – there will be losses incurred. The accurate amount of losses will be known after completion of the asset disposal because Reverta’s performance is affected not only by the efficiency of our work but also at large by such factors as both Latvian and worldwide economic growth, the real estate market situation, the heavy schedule of Latvian courts and the counteractions undertaken by borrowers.”
264 properties have been sold for the total amount of EUR 16.3m during the first half of 2014 as compared to EUR 14m during the same period last year. The high indices can be explained by the rather dynamic real estate martket resulting both from the overall growth of the Latvian economy and the increasing number of new mortgage loans being issued. There was especially big demand for medium-sized flats in standard apartment buildings and the interest in land plots is moderate though increasing. The aforementioned economic circumstances along with the efficient sales strategy have allowed Reverta to increase the speed and volume of RE sales. By the end of June 2014, Reverta had offered 522 properties for sales.
Taking into consideration the uncertainty created by the Ukraine/Russia conflict, Reverta has made additional provisions for loan losses on loans affected by this conflict. The losses during the reporting period were in the amount of EUR 23.3m. As the value of some particular assets has decreased even by 90 percent due to the low quality of collateral securities, it can be expected that there will be need for even further provisions and more losses will be incurred.    
In line with the amendments to the Law on Control of Aid for Commercial Activity that were passed by the Parliament during the reporting period, Reverta will be allowed to repay sub-debts – the principal amount and interest, only after a full repayment of the State Aid. The adopted amendments will allow the State to be the first to recover investments into Parex banka and will allow Reverta to save EUR 4.4m of interest every year, as well as to postpone repayment of subordinated obligations in the amount of EUR 75m. The aforementioned sums mostly comprise payments to the former shareholders of Parex banka and associated persons.

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 550m from development and sales of distressed assets between 1 August 2010 and 29 August 2014.
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
 

Jul 17, 2014
Reverta sells Skonto complex for EUR 13.8 million

The Skonto complex, which was previously in the possession of AS Reverta, has been sold for EUR 13.8 million to its new owner SIA SSA. The recovered funds will be turned over to the State Treasury shortly.

“The Skonto complex was one of Reverta’s most complicated projects, and we see this sale as very successful as it allows the state to recover a significant amount of funds,” Edgars Miļūns, Senior Vice-President and Board Member of Reverta, explains.

Several investors had showed interest to purchase the Skonto complex. After careful consideration the offer by SSA was deemed to be the most profitable. Yesterday, July 16, the deal, including the money transfer, was completed.

In order to support development of sports in Latvia and take care of the needs of sports professionals and enthusiasts, on July 16, 2012 Reverta, as a socially responsible company, concluded a contract with SSA to ensure the use of the stadium for football matches and other sports events for a given period of time. In September 2013 Skonto was placed on the market as an investment project.

The loan initially granted by AS Parex Banka was intended to finance the purchase and development of the Skonto stadium. Due to long-term default on the loan, in 2011 the property was taken over by the biggest secured creditor – Reverta.

Jul 4, 2014
JSC Reverta will be making subordinated capital and interest payments only after a full repayment of the State Aid

JSC Reverta informs that in line with the amendments to the Law on Control of Aid for Commercial Activity that have become effective on 1st July 2014, JSC Reverta will be allowed to repay sub-debts – the principal amount and interest, only after a full repayment of the State Aid.

"In our opinion, this is a rational decision that will allow the State to be the first to recover its money invested in saving of Parex banka. The adopted amendments will allow the State to save EUR 4.4m of interest a year, as well as postpone repayment of subordinated obligations in the amount of EUR 75m," said Solvita Deglava, Chairperson of the Management Board of JSC Reverta.

The law amendments have established the following – if a company that has encountered financial difficulties received aid in accordance with the laws applicable to commercial activity aid, the company is prohibited, as of the time the commercial activity aid is granted until the termination of the grant of the aid, in the light of what has been determined in the European Commission decision or the national legal act on granting the aid, and notwithstanding the company’s existing legal obligations, from fulfilling subordinated obligations (including from repaying the loan, calculating, accumulating, or paying interest or any other remuneration on such loan) notwithstanding the time when such subordinated obligations were established.


For additional information:
Reverta is a distressed assets manager, the main competencies of which are loan restructuring, debt recovery and real estate management.
As of today, the Privatisation Agency of Latvia holds 84.15% of Reverta’s shares, the European Bank for Reconstruction and Development – 12.74% of shares, and the rest – 3.11% of shares belong to other shareholders.

To learn more about Reverta, please visit the corporate web-page of the Company: www.reverta.lv.

For more information, contact:
Marita Ozoliņa
Head of Communication and Marketing Department
Tel.: 67779142 or 29287169
E-mail: marita.ozolina@reverta.lv

May 30, 2014
RESOLUTIONS of Ordinary General Meeting of Shareholders of joint stock company „Reverta” to be held on May 30, 2014
RESOLUTIONS
of Ordinary General Meeting of Shareholders
of joint stock company „Reverta” to be held on May 30, 2014

I.    On approval of Annual report of joint stock company Reverta for the year 2013
To approve joint stock company Reverta Annual report for the year 2013 submitted by the Management Board of joint stock company Reverta and revised by the Supervisory Board.
 
Voting results:  decision is taken with the required majority of the votes.
 
II.    On report of the Audit Committee of joint stock company Reverta for the year 2013
To approve the report of the Audit Committee of joint stock company Reverta for the year 2013.
 
Voting results:  decision is taken with the required majority of the votes.
 
III.    On election of chartered auditor of joint stock company Reverta for the year 2014
1.    To elect SIA „PricewaterhouseCoopers”, registration No 40003142793, licence No.5 as chartered auditor of AS Reverta to review Annual report of AS Reverta for the year 2014 and year 2015.
2.    To authorise Management Board of AS Reverta to conclude an agreement with SIA „PricewaterhouseCoopers” on review of Annual report of AS Reverta for the year 2014 and year 2015, by stating that amount of remuneration of chartered auditor shall be coordinated with Supervisory Board of AS Reverta.”
 
Voting results:  decision is taken with the required majority of the votes.
 
IV.    On election of Audit Committee of joint stock company Reverta
1.    To dismiss Andris Riekstiņš and Svetlana Koļesņikova from the Audit Committee of AS Reverta as of 30 May 2014.
2.    To elect Andris Riekstiņš and Svetlana Koļesņikova members of the Audit Committee of AS Reverta for a period of 3 (three) years as of 31 May 2014.
3.    To delegate the Management Board of AS Reverta to conclude an agreement with Andris Riekstiņš and Svetlana Koļesņikova on performance of duties of members of the Audit Committee.
 
Voting results:  decision is taken with the required majority of the votes.
 
V.    On denomination of the share capital and nominal value of shares of joint stock company Reverta into EUR
1.    To perform the denomination of 311’027’295 (three hundred eleven million twenty-seven thousand two hundred ninety-five) shares of joint stock company Reverta, nominal value of each share being LVL 1.00 (one lat), from lats into euro, by determining that after the denomination the share capital is split into 4’425’519’666 (four billion four hundred twenty-five million five hundred nineteen thousand six hundred sixty-six) shares, nominal value of each share being EUR 0.10 (ten cents) and the total value of the share capital – EUR 442’551‘966.60 (four hundred forty-two million five hundred fifty-one thousand nine hundred sixty-six euro and sixty cents).
2.    The balance EUR 3.79 originating from the denomination from lats into euro, which cannot be expressed in new shares, is to be recorded in the reserves of joint stock company Reverta.
 
Voting results:  decision is taken with the required majority of the votes.
 
VI.    On amendments to the Articles of Association of joint stock company Reverta
1.    To amend article 3.1 of the Articles of Association of joint stock company Reverta and read it as follows:
“3.1 The share capital of the Company is EUR 442’551’966.60 (four hundred forty-two million five hundred fifty-one thousand nine hundred sixty-six euro and sixty cents) which consists of 4’425’519’666 (four billion four hundred twenty-five million five hundred nineteen thousand six hundred sixty-six) shares, the nominal value of each share being EUR 0.10 (ten euro cents), representing following categories:
3.1.1 3’569’749’708 (three billion five hundred sixty-nine million seven hundred forty-nine thousand seven hundred and eight) registered shares with voting rights;
3.1.2 855’769’958 (eight hundred fifty-five million seven hundred sixty-nine thousand nine hundred fifty-eight) registered shares without voting rights.”
2.    To authorise the Management Board of joint stock company Reverta to take the actions required to read the register of shareholders in the new wording due to the denomination of the share capital and shares of joint stock company Reverta from lats into euro by issuing new share certificates to the shareholders.
3.    To exclude article 3.4 form the Articles of Association of joint stock company Reverta.
4.    To authorise the Management Board of joint stock company Reverta to take the actions required to convert the dematerialized registered shares of joint stock company Reverta into registered shares in paper form by the issue of share certificates.
5.    To amend article 6.3.3 of the Articles of Association of joint stock company Reverta and read it as follows:
“6.3.3 establishment of any mortgage, pledge or collateral of the assets of the Company or its subsidiaries which exceed EUR 7.000.000 (seven million euro) or an equivalent amount in another currency at the current applicable exchange rate determined by the European Central Bank, except pledges to the Treasury of the Republic of Latvia given in regard to the financing received from the Treasury of the Republic of Latvia;”.
6.   Noteikt, ka akciju sabiedrības „Reverta” statūtu grozījumi stājas spēkā ar to reģistrācijas brīdi Latvijas Republikas Uzņēmumu reģistra Komercreģistrā.
 
Voting results:  decision is taken with the required majority of the votes.
 
 
For more information, contact:
Marita Ozoliņa
Head of Communication and Marketing Department
Tel.: 67779142 or 29287169
 
May 19, 2014
Draft resolutions of Ordinary General Meeting of Shareholders of joint stock company „Reverta” to be held on May 30, 2014
I. On approval of Annual report of joint stock company Reverta for the year 2013
To approve joint stock company Reverta Annual report for the year 2013 submitted by the Management Board of joint stock company Reverta and revised by the Supervisory Board.

II. On report of the Audit Committee of joint stock company Reverta for the year 2013
To approve the report of the Audit Committee of joint stock company Reverta for the year 2013.

III. On election of chartered auditor of joint stock company Reverta for the year 2014
1. To elect SIA „PricewaterhouseCoopers”, registration No 40003142793, licence No.5 as chartered auditor of AS Reverta to review Annual report of AS Reverta for the year 2014 and year 2015.
2. To authorise Management Board of AS Reverta to conclude an agreement with SIA „PricewaterhouseCoopers” on review of Annual report of AS Reverta for the year 2014 and year 2015, by stating that amount of remuneration of chartered auditor shall be coordinated with Supervisory Board of AS Reverta.”

IV. On election of Audit Committee of joint stock company Reverta
1. To dismiss Andris Riekstiņš and Svetlana Koļesņikova from the Audit Committee of AS Reverta as of 30 May 2014.
2. To elect Andris Riekstiņš and Svetlana Koļesņikova members of the Audit Committee of AS Reverta for a period of 3 (three) years as of 31 May 2014.
3. To delegate the Management Board of AS Reverta to conclude an agreement with Andris Riekstiņš and Svetlana Koļesņikova on performance of duties of members of the Audit Committee.

V. On denomination of the share capital and nominal value of shares of joint stock company Reverta into EUR
1. To perform the denomination of 311’027’295 (three hundred eleven million twenty-seven thousand two hundred ninety-five) shares of joint stock company Reverta, nominal value of each share being LVL 1.00 (one lat), from lats into euro, by determining that after the denomination the share capital is split into 4’425’519’666 (four billion four hundred twenty-five million five hundred nineteen thousand six hundred sixty-six) shares, nominal value of each share being EUR 0.10 (ten cents) and the total value of the share capital – EUR 442’551‘966.60 (four hundred forty-two million five hundred fifty-one thousand nine hundred sixty-six euro and sixty cents).
2. The balance EUR 3.79 originating from the denomination from lats into euro, which cannot be expressed in new shares, is to be recorded in the reserves of joint stock company Reverta.

VI. On amendments to the Articles of Association of joint stock company Reverta
1. To amend article 3.1 of the Articles of Association of joint stock company Reverta and read it as follows: “3.1 The share capital of the Company is EUR 442’551’966.60 (four hundred forty-two million five hundred fifty-one thousand nine hundred sixty-six euro and sixty cents) which consists of 4’425’519’666 (four billion four hundred twenty-five million five hundred nineteen thousand six hundred sixty-six) shares, the nominal value of each share being EUR 0.10 (ten euro cents), representing following categories: 3.1.1 3’569’749’708 (three billion five hundred sixty-nine million seven hundred forty-nine thousand seven hundred and eight) registered shares with voting rights; 3.1.2 855’769’958 (eight hundred fifty-five million seven hundred sixty-nine thousand nine hundred fifty-eight) registered shares without voting rights.”
2. To authorise the Management Board of joint stock company Reverta to take the actions required to read the register of shareholders in the new wording due to the denomination of the share capital and shares of joint stock company Reverta from lats into euro by issuing new share certificates to the shareholders.
3. To exclude article 3.4 form the Articles of Association of joint stock company Reverta.
4. To authorise the Management Board of joint stock company Reverta to take the actions required to convert the dematerialized registered shares of joint stock company Reverta into registered shares in paper form by the issue of share certificates.
5. To amend article 6.3.3 of the Articles of Association of joint stock company Reverta and read it as follows: “6.3.3 establishment of any mortgage, pledge or collateral of the assets of the Company or its subsidiaries which exceed EUR 7.000.000 (seven million euro) or an equivalent amount in another currency at the current applicable exchange rate determined by the European Central Bank, except pledges to the Treasury of the Republic of Latvia given in regard to the financing received from the Treasury of the Republic of Latvia;”.
6. To establish that the existing decision on amendments to the Articles of Association comes into force after registration of the amendments described above in the Commercial Register of the Register of Enterprises of the Republic of Latvia.
Apr 30, 2014
Notification on convocation of joint stock company “Reverta” Annual General Meeting of shareholders

The Management Board of joint stock company “Reverta” (unified registration number: 40003074590, legal address: Republikas laukums 2A, Riga, Latvia LV-1522) convenes the Annual General Meeting of Shareholders of joint stock company “Reverta” and announces that it will take place on May 30, 2014 at 14.00 p.m. at 5th floor conference room No 5.3.55 of joint stock company “Citadele banka”, Republikas laukums 2A, Riga, Latvia.

Agenda:

  1. On approval of Annual report of joint stock company “Reverta” for the year 2013.
  2. On report of the Audit Committee of joint stock company “Reverta” for the year 2013.
  3. On election of chartered auditor of joint stock company “Reverta” for the year 2014.
  4. On election of Audit Committee of joint stock company “Reverta”.
  5. On denomination of the share capital and nominal value of shares of joint stock company “Reverta” into EUR.
  6. On amendments to the Articles of Association of joint stock company “Reverta”. 
     

The Shareholders can get acquainted with the audited Annual report of joint stock company "Reverta" for the year 2013 on the website of joint stock company "Reverta” http://www.reverta.lv at Investors section under subsection Financial information.

The shareholders who represent at least 1/20 part of the company’s share capital, have the right within 7 days after the publication of the notification to require the institution which convenes the shareholders meeting, to include additional items on the agenda of the meeting. The shareholders, who propose to include additional items on the agenda of the shareholders’ meeting, are obliged to submit a draft resolution on the issues that are proposed by them for inclusion on the agenda, or an explanation on the issues where no resolution is planned to be adopted to the institution which convenes the shareholders’ meeting. The shareholders have the right to submit draft resolutions on items included on the agenda of the shareholders’ meeting within 7 days after the notification about convocation of the shareholders’ meeting is released. The shareholders have the right to submit draft resolutions on the items included on the agenda of the shareholders’ meeting during the meeting, if all the draft resolutions that have been submitted to the shareholders’ meeting have been reviewed and rejected. If a shareholder submits a written requisition to the Management Board at least 7 days before the shareholders’ meeting, the Management Board is obliged to give him/her the required information on the issues included on the agenda at least 3 days before the shareholders’ meeting. Upon request of the shareholders, the Management Board is obliged to provide information to the shareholders’ meeting about the company’s economic situation to such an extent that is necessary to objectively review and adopt a resolution on the respective issue on the agenda.

The total amount of joint stock company “Reverta” shares is 311 027 295 and the total amount of joint stock company “Reverta” shares with voting rights is 250 883 439.

The registration of shareholders will be open from 13.00 p.m. till 14.00 p.m. on the day of meeting – May 30, 2014 - at the venue of the meeting.
The shareholders have the right to participate at 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 a written power of attorney of the shareholder represented or legal representatives shall present a document certifying the authorisation. The shareholders can get acquainted with the form of a written power of attorney on joint stock company’s “Reverta” website http://www.reverta.lv at Investors section.
     

Shareholders of joint stock company “Reverta” can get acquainted with draft decisions as well as additional information and give their suggestions and proposals on the Agenda starting from 16 May, 2014 till 29 May, 2014 at premises of joint stock company “Reverta”, Republikas laukums 2A, Riga, Latvia, on any business day from 10.00 a.m. till 16.00 p.m., by arranging an appointment on the previous day by phone +371 67779178 or +371 67779144 and at the Registration on the day of meeting.

The proposed draft decision on the 6th item of the agenda “On amendments to the Articles of Association of joint stock company “Reverta””:

  1. To amend article 3.1 of the Articles of Association of joint stock company “Reverta” and read it as follows: “3.1 The share capital of the Company is EUR 442’551’966.60 (four hundred forty-two million five hundred fifty-one thousand nine hundred sixty-six euro and sixty cents) which consists of 4’425’519’666 (four billion four hundred twenty-five million five hundred nineteen thousand six hundred sixty-six) shares, the nominal value of each share being EUR 0.10 (ten euro cents), representing following categories: 3.1.1 3’569’749’708 (three billion five hundred sixty-nine million seven hundred forty-nine thousand seven hundred and eight) registered shares with voting rights; 3.1.2 855’769’958 (eight hundred fifty-five million seven hundred sixty-nine thousand nine hundred fifty-eight) registered shares without voting rights.”
  2. To authorise the Management Board of joint stock company “Reverta” to take the actions required to read the register of shareholders in the new wording due to the denomination of the share capital and shares of joint stock company “Reverta” from lats into euro by issuing new share certificates to the shareholders.
  3. To exclude article 3.4 from the Articles of Association of joint stock company “Reverta”.
  4. To authorise the Management Board of joint stock company “Reverta” to take the actions required to convert the dematerialized registered shares of joint stock company “Reverta” into registered shares in paper form by the issue of share certificates.
  5. To amend article 6.3.3 of the Articles of Association of joint stock company “Reverta” and read it as follows:
    “6.3.3 establishment of any mortgage, pledge or collateral of the assets of the Company or its subsidiaries which exceed EUR 7.000.000 (seven million euro) or an equivalent amount in another currency at the current applicable exchange rate determined by the European Central Bank, except pledges to the Treasury of the Republic of Latvia given in regard to the financing received from the Treasury of the Republic of Latvia;”.
  6. To establish that the existing decision on amendments to the Articles of Association comes into force after registration of the amendments described above in the Commercial Register of the Register of Enterprises of the Republic of Latvia. 



Yours sincerely,
Joint stock company “Reverta” Management Board

Apr 29, 2014
The Audited Results 2013 of JSC Reverta
In 2013, EUR 57.3m has been paid to the State Treasury in repayment of State Aid. This sum comprised the principal in the amount of EUR 32.2m and the interest in the amount of EUR 25.1m. The total of the cash funds recovered through the management of the loan portfolio and the realisation of the assets of Reverta was EUR 86.9m.

Overall, since 01 August 2010 to the end of 2013, Reverta has paid EUR 157.8m to the Treasury in repayment of State Aid to Parex banka. In addition the Syndicated Loan of Parex banka (which was State guaranteed) of EUR 234m was repaid in term and in full together with interest of EUR 10.6m. The repayment to the Treasury has started a year earlier and has been made in a larger amount than envisaged in the Restructuring Plan.

“Since the beginning of Parex banka/Reverta on 01 August 2010, we have recovered more than half a billion euros. The result achieved clearly shows the appropriateness of our chosen strategy. The management of the remaining loans becomes more and more complicated and time-consuming because the comparatively more ordinary loans have already been realised and the remaining ones are characterised by lengthy court proceedings, distinct repayment difficulties and counteractions of some defaulting borrowers. Nevertheless, we expect to be able to make repayments to the Treasury in 2014 at least in the amounts of the year 2013,” says the Chairperson of the Management Board of Reverta Solvita Deglava.

With the income level of the general population gradually stabilising and even starting to grow, the well-considered sales strategy has allowed for recovery of EUR 37.8m from the real estate portfolio, and this is the best real estate sales performance since the beginning of Parex banka/Reverta on 01 August 2010.

The reporting period ended with a EUR 136,4 m loss, which reflects the underlying nature of the Company and the approved Budget 2013. As in years before, the loss mostly comprises provisions for impairment of the loan portfolio and net interest expense.

“There are also significant differences observed in the historical value of the collaterals pledged in favour of Parex banka and their current and actual market value – quite often the value has decreased even by 90 per cent,” points out Solvita Deglava.

A significant amount of interest – an average of EUR 4.3m per year – is paid on the sub-debts (the subordinated capital). The largest part of these payments is made to persons associated with the former Parex banka.

At the end of 2013, the total assets of Reverta were EUR 339.5m. As a result of a successful loan restructuring and recovery, the net balance sheet value of the loan portfolio has decreased to EUR 276,1 m.

For additional information:
Reverta is a distressed assets manager, the main competencies of which are loan restructuring, debt recovery and real estate management.

As of today, the Privatisation Agency of Latvia holds 84.15% of Reverta’s shares, the European Bank for Reconstruction and Development – 12.74% of shares, and the rest – 3.11% of shares belong to other shareholders.

To learn more about Reverta, please visit the corporate web-page of the Company: www.reverta.lv.


For more information, contact:
Marita Ozoliņa
Head of Communication and Marketing Department
Tel.: 67779142 or 29287169
E-mail: marita.ozolina@reverta.lv
Apr 8, 2014
Reverta Pays EUR 18.3m to the State Treasury

According to the Plan 2014, in April, Joint Stock Company Reverta has transferred EUR 12.6m to the State Treasury in repayment of the principal amount of State Aid. In addition to that, a regular interest payment in the amount of EUR 5.7m has been made in February. Thus, a total of EUR 18.3m has been paid to the Treasury this year.

These funds have been mostly recovered from the restructured loans and a successful realisation of the real estate portfolio.

“We expect to be able to make the next payment in the amount of EUR 5.5m in accordance with the Agreement, i.e. in May,” says the Chairperson of Reverta Solvita Deglava.

“At the moment, the most complex assets have remained in our portfolio. Mostly these are cases where the borrowers’ prime target is to avoid repayment of their loans by way of counteractions. All available unlawful and lawful means (including inconsistencies of regulatory enactments and the slow pace of court proceedings) are used to delay repayment. For example, the proceedings against Delfīns partneri and the associated persons for recovery of the loan of EUR 45m last already since 2010 and cause considerable loss to the State,” says Solvita Deglava.  

Currently, Reverta has realised approximately half (the better half) of the distressed assets portfolio. Overall, since 01 August 2010 to 04 April 2014, Reverta has paid EUR 176.2m to the Treasury and has repaid the state guaranteed syndicated loan in the amount of EUR 234m together with interest of EUR 10.6m.  

For additional information:
The main competencies of the JSC Reverta are loan restructuring, debt recovery and real estate management. Since 01 August 2010 to 28 February 2014, Reverta has recovered more than EUR 524m from the development and sales of distressed assets.

To learn more about Reverta, please visit the Company’s web page: www.reverta.lv.


For more information contact:
Marita Ozoliņa
Head of Communication and Marketing Department
Tel.: 67779142 or 29287169
E-mail: marita.ozolina@reverta.lv

Feb 28, 2014
Reverta: The Amount of Funds Recovered Exceeds Half a Billion Euros
In 2013, EUR 57.3m has been paid to the State Treasury in repayment of State Aid. This sum comprised the principal in the amount of EUR 32.2m and the interest in the amount of EUR 25.1m. The total of the cash funds recovered through the management of the loan portfolio and the realisation of the assets of Reverta was EUR 86.9m.

Overall, since 01 August 2010 to the end of 2013, Reverta has paid EUR 157.8m to the Treasury in repayment of State Aid to Parex banka. In addition the Syndicated Loan of Parex banka (which was State guaranteed) of EUR 234m was repaid in term and in full together with interest of EUR 10.6m. The repayment to the Treasury has started a year earlier and has been made in a larger amount than envisaged in the Restructuring Plan.

“Since the beginning of Parex banka/Reverta on 01 August 2010, we have recovered more than half a billion euros. The result achieved clearly shows the appropriateness of our chosen strategy. The management of the remaining loans becomes more and more complicated and time-consuming because the comparatively more ordinary loans have already been realised and the remaining ones are characterised by lengthy court proceedings, distinct repayment difficulties and counteractions of some defaulting borrowers. Nevertheless, we expect to be able to make repayments to the Treasury in 2014 at least in the amounts of the year 2013,” says the Chairperson of the Management Board of Reverta Solvita Deglava.

With the income level of the general population gradually stabilising and even starting to grow, the well-considered sales strategy has allowed for recovery of EUR 37.8m from the real estate portfolio, and this is the best real estate sales performance since the beginning of Parex banka/Reverta on 01 August 2010.

The reporting period ended with a EUR 136,4 m loss, which reflects the underlying nature of the Company and the approved Budget 2013. As in years before, the loss mostly comprises provisions for impairment of the loan portfolio and net interest expense.

“There are also significant differences observed in the historical value of the collaterals pledged in favour of Parex banka and their current and actual market value – quite often the value has decreased even by 90 per cent,” points out Solvita Deglava.

A significant amount of interest – an average of EUR 4.3m per year – is paid on the sub-debts (the subordinated capital). The largest part of these payments is made to persons associated with the former Parex banka.

At the end of 2013, the total assets of Reverta were EUR 339.5m. As a result of a successful loan restructuring and recovery, the net balance sheet value of the loan portfolio has decreased to EUR 276,1 m.

For additional information:
Reverta is a distressed assets manager, the main competencies of which are loan restructuring, debt recovery and real estate management.

As of today, the Privatisation Agency of Latvia holds 84.15% of Reverta’s shares, the European Bank for Reconstruction and Development – 12.74% of shares, and the rest – 3.11% of shares belong to other shareholders.

To learn more about Reverta, please visit the corporate web-page of the Company: www.reverta.lv.


For more information, contact:
Marita Ozoliņa
Head of Communication and Marketing Department
Tel.: 67779142 or 29287169
E-mail: marita.ozolina@reverta.lv
Jan 31, 2014
Edgars Miļūns Appointed Member of the Management Board of Reverta
Edgars Miļūns has a significant work experience in the real estate and crediting fields gained at various companies. For the last three years he has performed the duties of the Vice-President and the Head of Real Estate Management Department of Reverta. Before that he worked with the companies E.L.L. Nekustamie īpašumi (a Merko Group company) and FKSM (YIT Celtniecība, TOP Māja). Edgars Miļūns has studied at the Riga International School of Economics and Business Administration and has received the Master’s degree in Business Management.

As before, the other members of the Management Board of Reverta remain Solvita Deglava and Ruta Amtmane. Thus, the Management Board of the Company will be represented by three highly qualified specialists in the fields of finance, legal issues and real estate management. In accordance with the Commercial Law, the Management Board is elected for five years.

To learn more about Reverta, please visit the Company’s home page: www.reverta.lv

For additional information contact:
Marita Ozoliņa
Head of Communication and Marketing Department
Tel. 67779142 or 29287169
E-mail: marita.ozolina@reverta.lv