Multi-creditor loans are one of the most difficult NPL types to be resolved by financial operators. The existence of multiple creditors and their poor coordination lead to uncertainty about rights to debtor’s assets and cash flows (with longer resolution times, difficulties and costs related to cooperating with other concurrent creditors), lower investor participation in the sale processes of this kind of assets and a larger negative impact on asset values.
Debitos’ new product Creditor Coordination will help creditors and investors to gain the maximum of their investments through coordinated sales activities. The following coordinated loan sales are supported:
- Sale from one creditor to another creditor on the same debtor
- Sale from several creditors to a 3rd party investor
- Request from one investor to buy all loans/claims of a specific debtor