EUR 45m junior loan to a privately held German residential portfolio
Starting point 2008:
Danish borrower in financial distress
Berlin-based asset portfolio levered above portfolio market value, but fundamentally attractive
Framework agreement with creditors sought to support orderly asset disposals
Trusted and co-operative owner and management group added comfort
The situation we were faced with:
Complex group structure
Danish and German security package
Multiple creditors and conflicting agendas
Portfolio market value below total debt, but with evident value potential
Where Reviva added value:
Negotiated first 3 year multi-bank agreement with the aim of avoiding bankruptcy
Instrumental in securing separation of German asset base (main collateral for Reviva’s client) into a ring fenced structure
Multiple meetings with borrower’s management to understand and agree on business plan
At expiry of first multi-bank agreement, the position of Reviva’s client was firmed up in a second multi-bank agreement
Negotiated scheduled payment plan based on a borrower’s forecast to split out and sell individual flats rather than the portfolio as a whole
Follow-up on reporting and multiple meetings with borrower’s management to secure adherence to payment plan and schedule
Outcome:
With the borrower’s individual sales efforts exceeding plans, a full refinancing of the Reviva managed exposure was secured in late 2013