OREANDA-NEWS. June 11, 2013. Financial reports of the 1st Quarter 2013 of Joint-Stock Company Reverta continue to show positive results – the Company has met its target and has made a EUR 7.1m interest payment on State Aid to the State Treasury.

Overall, EUR 16.5m, was recovered during the reporting period from development and sales of distressed assets, and another payment of EUR 5.9m was made shortly after the end of the reporting period.

Thus, there is reason to believe that the approved action strategy and business management decisions taken have proved to be suitable for achieving the best possible performance in the given circumstances. As before, mostly the sums available to repay to the State Treasury were recovered because of loan restructuring and sales of separate claim rights activities. At the end of the reporting period there were 2386 credit cases under supervision of the Company filed for enforcement activities to be launched.

While enjoying accomplishments, Christopher Gwilliam also points out to the fact that it becomes more and more difficult to recover State Aid: „With every restructured and recovered distressed loan, proportion of particularly difficult-to-recover loans requiring considerable resources, including those of people and time, is increasing. Besides, too lengthy and, therefore, often inefficient litigations lead to impairment of the value of Company’s loan portfolio, and this means less amounts of money recovered.”

The amount of money collected from sales of real estate properties has significantly increased since the end of the last Quarter 2012. Third parties have bid for 120 real estate properties for the total amount of EUR 3.3m at auctions where properties pledged in favour of the Company or properties encumbered with collection rights were sold. Overall, the Company has participated in 362 auctions of real estate properties during the reporting period. At the end of it, there were approximately 370 real estates with the total market value of EUR 30m put on sale after carrying out all necessary maintenance works.

Regular provisions for unsecured debts and the excess of interest expense over interest income are the main items in the loss section of the Company’s financial report. Though, it should be reminded that these items do not affect the actual performance of the Company or its cash flow, and the purpose of the Company (which is recovery of distressed loans once granted by Parex banka) and resulting operation model cannot be measured by the standards applied to companies of other spheres, including credit institutions.

The distressed assets portfolio of JSC Reverta consists of debts in Baltic and the CIS countries, and approximately 60% of all debts are to be recovered in Latvia.