Debitos GmbH: Creditor in the Kirch-bankruptcy successfully sells his claim

FRANKFURT, Germany - July 1, 2015 - PRLog -- Debitos becomes more popular among creditors who aim to sell their claims in bankruptcy procedures.

Larger bankruptcy proceedings such as the case of the Kirch-Group take several years to unwind. This results in a high level of uncertainty with regards to the timing and amount of the last payout. Creditors are thus motivated to sell claims that have already been written off in order to faster realize a monetization. More and more banks as well as corporates use the Debitos (https://www.debitos.de/?language=english) online-platform to trade their claims. In 2014 alone, non-performing loans and bankruptcy claims with a total face value of more than 1.2 billion euros were offered on the exchange. Debitos founder Timur Peters comments: “The majority of this volume was sold successfully in more than 77 transactions.”

In early 2015, a supplier sold his claim with a face value of 11.3 million euros in the PROKON-bankruptcy procedure at a final price of more than 30%.  Now, only a few months later, a creditor involved in the Kirch case successfully used the Debitos platform in order to put closure on the bankruptcy procedure, which had been ongoing since 2002. Summing up the payments received from the bankruptcy administrator over the past few years and the now realized sales price on Debitos, the creditor realized a total payout of more than 32%. The bankruptcy of Kirch-Group resulted in a number of creditors, including well-known banks, Hollywood studios and sports marketers, with claims totaling more than 5 billion euros. “Debitos is the perfect platform on which they can quickly realize their claims”, says Timur Peters.

The question is often asked who the buyers on Debitos are. The platform only allows national and international institutional investors to register. These buyers expect a payout above their final purchase price. While the market for distressed assets such as bankruptcy claims worked bilaterally between sellers and buyers in the past, Debitos offers a fast multilateral solution that typically results in higher total payouts.

Sellers need to complete standardized questionnaires regarding the nature of their claims, which are automatically categorized to fit buyers’ investment criteria. While the due diligence and pricing takes place online, settlement is completed offline between the seller and the final buyer.

About Debitos:

Debitos is Germany’s first online-exchange, on which banks and corporates can actively trade both real estate-secured and unsecured non-performing loans, dunned and enforceable claims as well as insolvency claims. The platform is available at www.debitos.de and allows sellers to offer claims individually or bundled as a portfolio. More than 300 institutional investors compete with one another and place their bids in an online auction. Through this process, sellers increase transaction prices and transparency. More than 1.400 corporates currently use the exchange to trade dunned invoices, enforceable claims, non-performing loans and bankruptcy claims. In 2014 a total volume of over 1.2 billion euros has been offered on the exchange while 77 transactions were successfully finished. Debitos GmbH is headquartered in Frankfurt am Main, Germany. The company’s managing partners are Hajo Engelke and Timur Peters.

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