Six entities have submitted their expression of Interest files to the Special Secretariat for Private Debt Management. According to relevant information, Davidson Kempner, Bain, Fortress, doValue, LMC Partners and Bracebridge Capital were amongst the interested entities.
The committee for conducting the public open electronic tender will meet to check the supporting documents of the filed files and then will invite the Shortlisted to take part in the 2nd Dialogue Phase of the tender.
The new Entity that complements the bankruptcy law of the second chance, starts with an asset value of around €2 billion. In the context of the Concession Agreement, the acquisition and re-leasing entity undertakes the obligation to acquire the main residence of a "bankrupt" vulnerable debtor, and re-lease it to him , for twelve years.
The Concession Agreement will provide for a mechanism, based on which, before the exhaustion of the Agency's initial financial commitments, the latter will have the right to choose to increase them, in any case extending in time its obligation to acquire a main residence from vulnerable debtors . Otherwise, the State may reassign the obligations and responsibilities of the acquisition and re-leasing body to another legal entity, without affecting the existing leases that have been concluded with the Body.
In addition to the Equity Participation, the Entity will be able to finance real estate purchases and its general activity with loan capital from acceptable funding sources that will be determined in Phase B'.
The State, at its absolute discretion, may choose to provide guarantees to the Agency, the type, amount, extent as well as the consideration of which will be determined in Phase B after taking into account the results of the Competitive Dialogue. The provision of any such guarantee will be subject to the rules of European State Aid Law, including the approval of an aid scheme by the competent Directorate General for Competition of the European Commission.
The Ministry of Development estimates that on an annual basis it will buy about 5,000 houses, the systemic banks talk about 3,000, with the result that it needs both capital and know-how supported by tools capable of dealing with properties with a wide range in terms of value, but also particularities that require the existence of data that currently do not exist in the shallow and low volume Greek market.
