Business recovery services

Non-Performing Loans (NPLs) 


Overview


While the problem of China's non-performing loans (“NPL”) is well-known, understanding what to do to find the hidden value in pricing or servicing such loans is less so. Whether you need help managing portfolio sales, loan portfolio due diligence, valuation and pricing, transaction structuring or post deal loan servicing, we’re on hand to help you make informed decisions and maximise value.

When it comes to NPL issues, PwC is one of the leading firms in China with the experience to help you with the loan recovery process. Our people have been working on NPL assignments in China since 2000. The depth and breadth of our experience gives us unique insights into the loan valuation process that really help when it comes to portfolio evaluations and pricing discussions.

Potential issues

As a buyer:
  • You’re looking for investment opportunities
  • You need an independent review and valuation on the target loan portfolio
  • You need advice on deal structures
  • You want to be more certain about the accounting and tax implications of potential deal structures
  • You want to engage a project manager with the right expertise to manage the execution of the deal
  • You want to engage an expert to manage the subsequent loan collection process.
As a seller:
  • You want to market your portfolio for sale in a more effective way so as to maximise its potential value
  • You are looking for potential investors
  • You want to engage a project manager with the right expertise to manage the execution of the deal.

How we can support you

Buy-side services
We offer a complete advisory service that can be tailored to meet your requirements:
  • Identify potential portfolio investment opportunities.
  • Conduct loan portfolio due diligence and valuation.
  • Participate in roll-up (loan-by-loan recovery assessment) meetings.
  • Advise on potential deal structures for proposed transactions to mitigate potential risks.
  • Identify accounting and tax implications of potential deal structures and advise on plans to minimise costs.
  • Assist in the deal completion process, including assistance in securing requisite government approval.
 
Sell-side services
We can act as the lead financial advisor in relation to all facets of NPL sales, including complete management of the disposal process.

Our services throughout the NPL cycle

Preparation
for sale
  • Review, classify and stratify portfolio
  • Pool and apckage sub-portfolios to maximise their potential value
  • Advise on the right investor review files, including file content and information collation and organisation
  • Advise on the right marketing and disposal strategies, and
  • Prepare confidential information memorandum.
 
Investor
sourcing
  • Identify potential investors for bilateral deals or public tenders, and
  • Target specialist investors for specific sub-portfolios/tranches.
 
Execution / completion
of sale
  • Manage the entire portfolio sales process
  • Structure transactions
  • Design appropriate bidding and sales procedures
  • Oversee investor contact, including Investor Invitation and Investor Qualification
  • Evaluate investment proposals
  • Negotiate detailed terms, and
  • Co-ordinate the involvement of legal and other advisors.
Post-deal services
Loan Portfolio Recovery Management
  • Manage the loan collection process
  • Advise on loan servicing set-up issues, and
  • Advise on issues tha timpact the collection process



Our Experience


Contacts
Ted Osborn
Business Recovery Services Leader
Hong Kong
Tel: +[852] 2289 2299 Email
Victor Jong
Partner
Shanghai
Tel: +[86] (21) 2323 3650 Email
Christopher So
Partner
Hong Kong
Tel: +[852] 2289 2577 Email
Marie Rowbotham
Director
Hong Kong
Tel: +[852] 2289 2504 Email
Chris Chin
Director
Hong Kong
Tel: +[852] 2289 2530 Email