Distressed Debt

Distressed debt market in Turkey primarily consists of the non-performing loan portfolios offered for sale by the Savings Deposit Insurance Fund. The first NPL auction offered by SDIF ($336 mn in principal) was completed in August 2004. Deutsche Bank acquired the portfolio for approximately $20 mn in December 2004. The legal and physical file transfers were completed in March 2005.  DB owns and operates the first private AMC in Turkey named “Bebek VYS AS”.

The second and the largest NPL portfolio was offered for sale in April 2005 with a principal amount of $1 bn. A consortium formed by Fiba Holdings of Turkey and Lehman Brothers acquired the portfolio for $161 mn and 43% profit sharing with the SDIF.

What we do:

EVG Securities cooperates with the leading local legal and real estate firms in Turkey in distressed asset resolutions. We offer the following services in distressed debt area:       

• Advisory on financial, taxation, and legal issues concerning distressed debt and asset resolutions in Turkey
• Due-diligence and valuation of NPLs and related collateral such as real estate, operating and other financial assets
• Corporate restructuring of impaired operating assets
• Debt-for-equity swap transactions for companies under financial distress
• Disposition of assets through sales or liquidation
• Loan servicing and follow-up
• Legal tracking and litigation

For more information on the distressed asset market in Turkey, please see our research note.