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Reff & Associates Advises Patria Bank on Sale of NPL Portfolio to KRUK Group

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Romania's Reff & Associates, a member of the Deloitte Legal network, has advised Patria Bank on the sale of a portfolio of non-performing loan receivables with a total nominal value of RON 502 million to companies in the KRUK Group.

The portfolio was segmented in two tranches with each sold following what Reff & Associates describes as "a dedicated competitive process for selecting the buyer." The first tranche, with a face value of approximately RON 245 million, consisted of unsecured consumer loans, and was sold in October 2018 (as reported by CEE Legal Matters on October 31, 2018). The second tranche, with a face value of approximately RON 257 million, was announced in January 2019, and consists of secured loans granted to companies and consumers.

Reff & Associates advised Patria Bank on both phases of the project and with respect to both portfolio tranches. With regard to the second tranche, the firm reports that it "will continue to assist Patria Bank up to the completion of post-transfer formalities." The project was headed by Reff & Associates Managing Partner Andrei Burz-Pinzaru and coordinated by Managing Associate Andreea Serban, with the assistance of Senior Associate Lorena Rosia and Associate Danut Arion.

"Completing these transactions in a difficult time for the secondary market of NPLs in Romania indicates that selling these portfolios remains one of the key tools for banks to efficiently manage these cases," commented Burz-Pinzaru. "It remains to be seen if we will continue to see legislative evolutions which limit this type of disposals on the local market or if the Romanian lawmaker will understand to harmonize the legislation with the other EU states and with the Central European Bank’s recommendations, which stimulate this market in order to provide a stable and sustainable lending environment.” 

Editor's Note: After this article was published the KRUK Group informed CEE Legal Matters that it had relied solely on its in-house team to complete the team, led by "KRUK Romania long-term collaborator, lawyer Claudiu Gantoi."

Romanian Knowledge Partner

Țuca Zbârcea & Asociații is a full-service independent law firm, employing cross-disciplinary teams of lawyers, insolvency practitioners, tax consultants, IP counsellors, economists and staff members. It also operates a secondary law office in Cluj-Napoca (Romania), and has a ‘best-friend’ agreement with a leading law firm in the Republic of Moldova. In addition, thanks to the firm’s dedicated Foreign Desks, the team provides the full range of services to international investors seeking to gain a foothold or expand their existing operations in Romania. Since 2019, the firm and its tax arm are collaborating with Andersen Global in Romania.

Țuca Zbârcea & Asociaţii is providing legal services in every aspect of business, covering all major areas of practice: corporate and M&A; litigation and international arbitration; corporate tax; public procurement; TMT; employment; insurance; banking and finance; capital markets; competition; healthcare and pharmaceutical; energy and natural resources; environmental; intellectual property; real estate; regulatory legal services.

Țuca Zbârcea & Asociaţii is a First-Tier law firm in all international legal directories and a multiple award-winning law firm both locally and internationally. It received the CEE Deal of the Year Award (DOTY Awards 2021) and the Law Firm of the Year Award: Romania (IFLR Europe Awards 2021). 

Firm's website.

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