Non-Performing Loans (NPLs) 

PwC is one of the leading firms providing NPL related services in China and one of the few firms with experience in managing the loan recovery process.  The depth and breadth of our experience provides us with unique insights into the loan valuation process that can greatly assist in portfolio evaluations and pricing discussions.
  

Buy-side services

We offer complete advisory services that can be tailored to meet investor requirements:
  • Identifying potential portfolio investment opportunities;
  • Loan portfolio due diligence and valuation;
  • Participation in roll-up (loan-by-loan recovery assessment) meetings;
  • Advising on potential deal structures for proposed transactions;
  • Advising on accounting/tax implications of potential deal structures; and
  • Assisting in the deal completion process, including assistance in securing requisite government approvals.

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:
  • Preparation for sale: Portfolio review, classification and stratification; Pooling and packaging sub-portfolios to maximize their potential value; Advising on appropriate form of investor review files, including file content and information collation/organization; Advising on appropriate marketing and disposal strategies; Preparation of confidential information memorandum.
     
  • Investor sourcing: Identifying potential investors for bilateral deals or public tenders; Targeting specialist investors for specific sub-portfolios/tranches.
     
  • Execution/completion of sale: Management of the entire portfolio sales process; Transaction structuring; Designing appropriate bidding/sales procedures; Overseeing investor contact, including Investor Invitation and Investor Qualification; Evaluation of investment proposals; Negotiate detailed terms; Co-ordinating the involvement of legal and other advisors.

Post-deal services

  • Loan Portfolio Recovery Management: Managing the loan collection process; Advising on loan servicing set-up issues; Advising on issues that impact the collection process.