Bank of Cyprus is very close to reaching an agreement with Apollo investment fund for the sale of a portfolio of non-performing loans with a gross book value of €2.7 billion.
Even though certain procedural issues are still pending and will probably take a few weeks before they are closed, agreement on those of utmost importance seems to have been reached. For example, CyCMC which is the licensed borrowing company Bank of Cyprus set up so as to transfer the portfolio, has already changed its name to Gordian Holdings Limited.
This is the name of the Cyprus-based company to which non-performing loans will be transferred under the operation of Lapithus Asset Management. This is the company that Apollo uses to manage assets acquired in Europe.
At the same time, Apollo has begun recruiting staff even though part of the loan management will be undertaken by existing Bank of Cyprus employees with hands on experience in non-performing loans. Meanwhile, borrowers affected by the sale of these loans are now more willing to settle their dues through various ways.
In the meantime, the company has amended its constitution shortly after changing its name to Gordian Holdings and proceeded with a nominal capital increase as well as a transfer of shares.
Moreover, Bank of Cyprus announced that it got approval in March by the Central Bank of Cyprus as regards the Significant Risk Transfer benefit resulting from this Transaction. “This approval is an important step towards the completion of the Transaction which remains subject to a number of pre-existing conditions,” the announcement