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:

5.    huge administrative costs to ensure operation and control of a cross-border company;
6.    the prohibition by the restructuring plan to make investments into the development of leasing companies;
7.    legal risks arising from foreign jurisdiction and different business environment;
8.    acquiring of a significant sum of money. 


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. More than EUR380m have been recovered from development and sale of distressed assets in the time period from 01 August 2010 till 26 July 2012. 
To learn more about Reverta visit our company’s web page: www.reverta.lv



For more information contact:
Marita Ozoliņa-Tumanovska
Head of Communication and Marketing Department
Phone: 67779142, mob.: 29287169
e-mail: marita.ozolina@reverta.lv