Debitos marketplace offers Greensill creditors best opportunity to sell claims to motivated investors
- Unsecured creditors have opportunity to sell Greensill claims via Debitos marketplace
- Secondary sales via digital debt platforms provide transparency and increase market liquidity, improving achievable recoveries
- Debitos platform offers access to deepest pool of motivated buyers guaranteeing the best possible price
Frankfurt – May 16, 2023: Debitos, the leading secondary market for loans in Europe for banks and investors, offers creditors of insolvent Greensill Bank, which specialised in the pre-financing of supplier liabilities, to sell their claims to the largest pool of motivated buyers via the digital marketplace.
The Debitos platform offers by far the most liquid marketplace to sell Greensill credit receivables. “Already this year, investors in our marketplace have topped existing market offers,” explains Timur Peters, founder and CEO of Debitos. “The competitive pricing achieved on the Debitos marketplace for Greensill credit was the motivating factor why so many sellers have executed transactions. A number of municipalities took advantage of our platform to sell their positions with around 10% of that combined exposure sold successfully. We can confidently say our marketplace offers Greensill creditors the biggest pool of buyers, guaranteeing the best possible market price.”
Greensill Bank filed for insolvency in March 2021 after its main insurer stopped providing credit insurance on a reported $4.1 billion (circa €3.45 billion) of debt in portfolios it had created for clients, including Swiss bank Credit Suisse. In addition to banks and financial institutions, several German municipalities were invested in Greensill Bank with up to a combined €500 million, according to reports.
The insolvency of Greensill Bank was the biggest bank failure since the financial crisis in Germany. Since Greensill’s insolvency, Germany’s public prosecutor’s office has been investigating the bank for suspected fraud. The former NordFinanz Group was founded in 1927 and was renamed Greensill Bank in October 2014 after being taken over by the Anglo-Australian Greensill Group.
Motivated buyers via Debitos marketplace
Motivated investors willing to purchase outstanding Greensill credit are currently active on the Debitos platform. “Debitos provides a secure and confidential marketplace for creditors to trade positions efficiently with a depth of investor liquidity which supports a narrow bid-ask spread, allowing selling creditors to secure the best possible recoveries for their investments,” adds Timur Peters. “Digitalised secondary marketplaces are a fast and efficient alternative to traditional sales processes, which are often slower, less liquid and transparent.”
Debitos specialist track record
The Debitos has growing track record in creating a marketplace for creditors with recoveries subject to ongoing bankruptcy and liquidation proceedings. In December, Debitos extended creditors of Astaldi, the Italian construction company, to sell their claims to other investors via the digital marketplace. Prior to which, Debitos created a marketplace for the insolvency of Prokon, TelDaFax and KirchMedia.
Last month, Debitos integrated a Portfolio Analytics service into the platform, automating a primary due diligence function and support more efficient transactional activity. The new Portfolio Analytics service enables buyers to build interactive descriptive analytics reports for transactions on Debitos. The dashboard supports cash flow review at portfolio and loan by loan levels, as well as a variety of due diligence enhancements which lead to informed investor decisions and expectations regarding purchase price, recoveries, asset distribution, collateral composition, legal actions and interest debt coverage ratios. This enhanced due diligence experience often result to more fine-tuned pricing, aligning seller and buyer expectations.
Debitos is the leading loan transaction platform in Europe that enables banks, funds and companies to sell their credit exposures on the market through its open and transparent auction-based online transaction platform.
The platform leverages on the digitalisation of the entire sale process and can reduce the expected disposal timing to 3-8 weeks compared to 3-6 months of the traditional process. Debitos was founded in Frankfurt in 2010 and has since successfully transacted more than 900,000 loans in 16 countries. By now, more than 1,900 investors from all over Europe have registered with Debitos.