An Ireland-based unit of US investment giant Bain Capital sued Greek bank Piraeus in a € 34m action, claiming the Balkan institution breached guarantees when it sold a portfolio of loans unproductive to Irish society.
iraeus Bank defends the action in the High Court in London and insisted that the Irish company had no foundation and the Greek institution had no responsibility.
Bain entity, Dublin-based Amoeba Issuer, acquired a € 398 million portfolio of non-performing loans held by Piraeus in 2018. These loans had an original face value of € 1.95 billion. .
According to Piraeus, this sales contract included a clause that any complaint regarding loan guarantees must have been brought to Piraeus’ attention within 30 days of becoming aware of any alleged breaches. The Bain unit notified Piraeus of its claim in June of last year.
Amoeba Issuer claimed to have found errors in much of the loans he acquired under the Piraeus deal.
The Irish vehicle insisted that the guarantees given to it were false and inaccurate.
All of the loans acquired by Amoeba Issuer from Piraeus are real estate loans and all related to business assets in Greece. This was the first sale of nonperforming commercial property loans in Greece.
Amoeba Issuer’s 2019 accounts show that at the end of this year, the entity had € 368.6 million in financial assets at fair value and € 42.1 million in cash on its books.
At the end of 2019, there were 80 borrowers on all non-performing loans in the portfolio, up from 85 in 2018. There was one borrower who represented 25pc of the total portfolio value at the end of 2019, according to the accounts. , with no significant exposure of this type listed in 2018.
“The company mitigates the credit risk of issuers of financial assets through its investment manager, who continuously reviews and analyzes the company’s existing positions to attempt to negotiate repayments with borrowers, identifying issues as early as possible. start and take steps to liquidate the collateral and apply the proceeds of outstanding debt where applicable, ”the accounts note.
The accounts also show that of its € 42.1 million in cash held at the end of 2019, € 40.1 million was held with Ulster Bank and just under € 2 million with Piraeus Bank. .
Amoeba Issuer claimed in her case that she raised the alleged breaches of the guarantee twice with Piraeus Bank, and insisted that the Greek bank refused to respond to one of the claims, according to the legal information site Law360.