Distressed Assets
Helaba’s Distressed Assets Platform provides savings banks (Sparkassen) with an opportunity to sell distressed loan commitments as part of their credit portfolio management activities. The savings banks are able to sell smaller receivables portfolios from EUR 1.0 million (individual exposures from EUR 0.25 million) on an ongoing basis to investors (so-called "Pipeline Structure"). A bidding process involving several investors can be launched when nominal volumes exceed EUR 10 million.
Helaba supports the savings banks, acting as a neutral consultant throughout the transaction process (supervision/project management of the complete transaction "from one source"). This true sale of loan receivables allows the savings banks to reduce their credit risks, to improve the risk structure of their loan portfolio and to reduce the regulatory capital backing required. Moreover, a decline in the value of collateral is avoided and processing-related operational risks are reduced. The savings banks are able to concentrate necessary resources in the field of restructuring /work-out on more "promising" problem cases.
