On October 16th 2019, KRUK finalised a debt assignment transaction on the Romanian secondary market, becoming the owner of a debt portfolio comprising more than 640 thousand cases. The assets were acquired from GetBack Recovery S.R.L. for PLN 37.4m, and the amount was disclosed in the KRUK Group’s Q2 2019 investment expenditure.
The debts covered by the agreement of June 8th 2019 were effectively assigned after consent had been obtained from the court-appointed insolvency administrator of GetBack S.A. and all formal requirements of the transaction had been satisfied.
‘Once again, KRUK has proved its capability on the Romanian market. The transaction was complex and unique in that it involved the acquisition of a portfolio of over 640 thousand cases on the secondary market. It was time-consuming and required an adequate degree of commitment from each of the parties involved. Business-wise, the key aspect was to assess the portfolio in order to close the negotiations. One of the final conditions for closing the deal was to obtain clearance from the insolvency administrator appointed by the court in the accelerated arrangement proceedings with respect to GetBack S.A. w restrukturyzacji of Warsaw and payment of the price on the contractual terms, ’said Piotr Krupa, President of the KRUK S.A. Management Board.
‘I have always emphasised that we are open to investing in the secondary market as well. It was therefore obvious that we were determined to take a closer look at our competitor’s debt portfolios, especially that favourable conditions had been created for doing so. Today, the last formal requirements set down in our agreement with GetBack were fulfilled – it is an important moment, but we are not calling it a day. My transaction team is already actively working on further investments. The fourth quarter, especially in Romania, is a period of increased transaction activity, offering a multitude of investment opportunities,’ said Piotr Krupa, President of the KRUK S.A. Management Board.
KRUK’s debt is kept at low levels and its financial position permits further investments. Its net debt to equity stood at 1.3x at the end of H1 2019, one of the lowest debt ratios within the industry.