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HETA ASSET RESOLUTION AG

In 2016, SC Lowy was mandated for and successfully closed the sale of a number of single assets and portfolios totalling more than EUR 700mn of non-performing loans in South East Europe.

Objective

HETA Asset Resolution is a wind-down company owned by the Republic of Austria. Its statutory task is to dispose of the non-performing portion of Hypo Alpe Adria, nationalised in 2009, “as effectively as possible whilst preserving value”. SC Lowy was mandated as exclusive agent to advise on, market, manage process and complete the sale of assets totalling more than EUR 700 million, whilst maximising the price for HETA. These assets were non-performing loans including secured and unsecured exposures, related to borrowers and assets across Croatia, Bosnia, Serbia and Montenegro.

Transaction Process

SC Lowy spent significant time analysing the individual assets on a desk-top basis and on-the-ground in order to effectively advise HETA on make-up of the portfolios and sales process. We used our extensive sales network and expertise in this challenging asset class to effectively identify and market the portfolios to prospective buyers. The due diligence and sales process, with data-room and Q&A management was a critical component, which needed our detailed understanding and expertise of the assets, leveraging the quality of our analyst team. The transactions were structured as a true sale disposal via an assignment of claims/receivables, requiring SC Lowy’s deep knowledge and abilities for execution of complex illiquid transactions.

Outcome

By leveraging our global presence, strong distribution platform and specialist knowledge in illiquid and distressed assets, SC Lowy successfully completed the sale of the portfolios to several parties, maximizing the pricing for our client.