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Mar 8, 2017
On changes to the composition of shareholders of Reverta

Joint-stock company Reverta informs that in accordance with the Restructuring Plan set up for Parex banka and the decision of the Cabinet of Ministers of 15 December 2014 on the restructuring of liabilities towards the European Bank for Reconstruction and Development, the latter has ended its participation in Reverta on 7 March 2017. Henceforth, the Latvian privatisation agency will have a 96.89 % shareholding in Reverta and other shareholders will have 3.11 % of shares.

For additional information:
Reverta’s main competencies are loan restructuring, debt recovery and real estate management. According to the Restructuring Plan approved for Parex banka by the European Commission, Reverta’s economic activities will be discontinued at the end of 2017. By this term Reverta has to complete sales of its portfolio and cease all operations.

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

Feb 28, 2017
Reverta: 2016 was a difficult but successful year

Unaudited financial results of joint-stock company Reverta for 2016 (hereinafter also referred to as the Reporting Period) show that funds recovered in 2016 amount to EUR 74.1 m, as compared to EUR 61.3 m over the same period in 2015. This is a result of several large projects having been completed in Latvia, Lithuania, Estonia, and Russia after many years of work.
The largest projects completed in 2016 were the Lithuanian loan project (EUR 10.6 m), Meridiane – a valuable land plot in Tallinn (EUR 9 m), the reconstruction, lease and subsequent sales of the central office building of airBaltic (EUR 6.19 m), and the sales of a commercial property at Frunzenskaya Naberezhnaya in Moscow (EUR 2.3 m).

During the Reporting Period, Reverta has repaid the State Treasury EUR 60 m, of which EUR 40 m was used to repay the principal, and EUR 20 m was used to repay the interest on State aid granted to Parex Bank.

‘2016 was a difficult but also successful year because after many years of sustained efforts we managed to conclude several complicated projects outside Latvia. As a result, since August 2010 till the end of 2016, we have recovered EUR 740 m or 66 per cent of all assets received from Parex Bank,’ points out Solvita Deglava, Chairperson of the Management Board of Reverta.

‘Already since the start of our operation we have been informing supervisory authorities and the wider public that loss will have to be recognised and the recovery of the State aid in its entirety would be a miracle. Nevertheless, we have done everything in our power to recover as much as possible and to reduce loss. The amount of the recovered State aid will depend on what will be the conclusion of the commenced sales process of the remaining difficult assets,’ says Solvita Deglava.

In order to implement the EC approved Restructuring Plan which envisages completion of the workout of Reverta’s portfolio and closing of all operations by the end of 2017, Reverta has signed an agreement with KMPG Baltics for receiving expert’s advice on the sales process of Reverta’s loan and real estate portfolios. After having examined data available on Reverta’s virtual data room, seven potential investors made non-binding bids. In line with the recommendation of the consultant KPMG Baltics, four best tenderers were invited to participate in a more thorough examination of Reverta’s loan portfolio.

At the end of the Reporting Period Reverta’s total asset portfolio was EUR 57.2 m – as a result of an intensive workout, over a year Reverta’s assets have decreased by EUR 87,4 m or 60 per cent.

Additional information:
Reverta’s main competencies are loan restructuring, debt recovery and real estate management. According to the Restructuring Plan approved for Parex banka by the European Commission, Reverta’s economic activities will be discontinued at the end of 2017. By this term Reverta has to complete sales of its portfolio and cease all operations.

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

Feb 15, 2017
Reverta Makes another Regular Interest Payment of EUR 3.7 m to the State Treasury

In February 2017, joint-stock company Reverta has made another regular interest payment to the State Treasury in the amount of EUR 3.7 m. Since 1 August 2010 Reverta has repaid the State Treasury EUR 430.1 m but the total of various payments to the State amount to EUR 690.3 m, including EUR 16 m in the form of tax payments.

By the end of 2016 Reverta had recovered EUR 740.3 m which is 66 % of all distressed assets received from Parex Bank, thus exceeding the initial estimates of Reverta’s management.

Currently there are only assets undergoing complicated and time consuming workout process left in Reverta’s loan portfolio. Other assets have been already disposed of and the recovered funds have been repaid to the State. In order to wind up economic activities of the company by the end of 2017, Reverta is looking for an investor to buy its remaining assets. Alongside the portfolio sales process, Reverta will continue workout of the portfolios until the closing of their sale.

For additional information:
In order to implement the EC approved Restructuring Plan which envisages completion of the workout of Reverta’s portfolio and closing of all operations by the end of 2017, Reverta has signed an agreement with KMPG Baltics for receiving expert’s advice on the sales process of Reverta’s loan portfolios.
Of 65 contacted potential investors 15 signed confidentiality agreements and in November 2016 received access to the virtual data room. Upon examination of the provided data, in December 2016 seven potential investors submitted their non-binding offers. In line with the recommendation of the consultant KMPG Baltics, four best tenderers were invited to participate in a more thorough examination of Reverta’s loan portfolio.

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

Jan 11, 2017
Reverta: EUR 60 m paid to the State Treasury last year

In 2016 Joint Stock Company Reverta paid 60 million euros to the State Treasury, which is by seven million euros more than in 2015. Of this sum, 40 million euros were used to repay the principal amount and 20 million euros were used to repay the interest on State aid to Parex banka.
The results of the previous year were significantly improved through several large and complex projects in Latvia and abroad, completion of which required many years of sustained efforts. One of the best known is the reconstruction, lease and sales deal of the central AirBaltic office building for the total amount of 6.2 million euros.

Between 1 August 2010 and 31 December 2016 Reverta has recovered EUR 735.7 m from the restructuring of distressed loans, sales of bonds, and disposal of real estate properties, which is 65 per cent of all assets. EUR 426.4 m have been paid directly to the State Treasury, and this is only a part of all obligations fulfilled and payments made by Reverta in due time and in full amount.

“By 31 December 2016, in the form of various payments the State has received from Reverta more than EUR 670.6 m. This is indeed a good indicator in view of the status and quality of the distressed assets left behind by the previous shareholders of the bank. Often the real market value of the assets was only 10 per cent of the loan,” points out Solvita Deglava, Chairperson of the Management Board of Reverta.

Solvita Deglava emphasizes: “It was clear already in the middle of 2010 when recovery of the State aid was commenced that Reverta will not be a profitable company. We were aware of the expected losses but have done our best to substantially reduce them.”

“This year we are going to continue the restructuring of the remaining loans and the recovery of funds in addition to the cooperation with a consultant to actively sell Reverta’s portfolios. It is our task to discontinue Reverta’s economic activities by the end of 2017,” explains Solvita Deglava.

As most of Reverta’s assets have been already disposed of, currently company’s total assets are less than 70 million euros. During 2016, assets of Reverta decreased by euro 79.8 m or 55 %, as compared to 31 December 2015.

Additional information:
Reverta is a distressed assets manager, the main competencies of which are loan restructuring, debt recovery and real estate management. According to the Restructuring Plan approved for Parex banka by the European Commission, Reverta’s economic activities will be discontinued at the end of 2017. By this term Reverta has to complete sales of its portfolio and cease all operations.


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