Reverta Released Audited Financial Report of 2012
OREANDA-NEWS. Reverta’s audited financial report of 2012 shows clearly positive trend – overall, since 01st August 2010, almost EUR 0.5bn has been recovered through loan restructuring and sales of separate claim rights, and EUR 89.7m has been repaid to the State Treasury in 2012. Despite difficult market conditions, part of the recovered funds was even repaid ahead of the Restructuring Plan schedule.
Since 01st August 2010, EUR 100.5m has been repaid to the Treasury. In addition to that, in 2011, Reverta also repaid State guaranteed syndicated loan in the amount of EUR 234m.
Chairman of the Management Board of Reverta Christopher Gwilliam has pointed out that current economic situation has its impact on distressed assets management and debt recovery as well: „In spite of the difficult situation, the results achieved clearly show the suitability of the chosen strategy. According to the Restructuring Plan, our main goal is not that of making profit but that of recovering loans issued and minimising losses. Besides, 40% of all debts have to be recovered abroad, which means that there are specific situations and different judicial systems to be considered. Lengthy litigations and the general macroeconomic situation of Latvia lead to decrease in value of our properties, which automatically means that less amounts of money are recovered.”
Reverta ended the year with a EUR 137.7m loss, of which, 77% was related to losses in values of loans. Currently there are more than 1000 real estate items in the real estate portfolio of the Company. Reverta’s debt portfolio consists of Baltic and CIS (mostly Russian) debts, and 60% of all debts are those of Latvian origin.