e-debttrading.com Portfolio Sales

e-debttrading.com has specifically developed a number of new platforms for the sale of debt portfolios.

Whilst e-debttrading.com has a strong leaning to the open tender system, it also recognizes the need to provide a closed tender system for portfolios sales in selected countries.

In addition, e-debttrading.com has forged an alliance with Mandala Asset Solutions which can provide portfolio advisory services, including electronic datarooms.  The Seller has the option to establish the electronic dataroom on-site or off-site, as well determine the amount of information which can be released to the bidders.

Open or Closed Portfolio Tenders- New Features

Whilst the standard e-debttrading.com platform applies to all  sales, the following features apply specifically to  portfolio tenders:

Pre-Selected Bidders

When looking to sell a portfolio, the existing e-debttrading.com membership base will be contacted seeking an expression of interest to bid on the portfolio.

The seller can then select which bidders are acceptable to bid on the portfolio.  Only pre-selected bidders can compete on the transaction.

Selected bidders can use their existing e-debttrading.com User Name and password to bid on the tender.  After the tender closes the bidders can apply for new User Names and passwords.

Pre-selected bidders will need to execute a specific Confidentiality Agreement for each portfolio tender.

The seller must select which portfolio platform to use, ie open; closed or semi-closed format.

The seller will then issue a summary description of the portfolio to each pre-selected bidder.  Bidders wishing to proceed with the due diligence exercise will be required to pay a dataroom fee and will then be allocated time to access portfolio information.

The Portfolio Tender Process

Each tender will have a defined tender period, normally 30-60 days depending on the volume of due diligence required.

Bidders will need to complete their own due diligence before lodging a bid..

On the final day of the tender bids must be lodged no later than 5pm.

Open Portfolio Tender

Sellers have the option to place a minimum acceptable bid price or not.  If no reserve is used the seller must accept the highest bid made by tender closing.

Buyers can place multiple bids during the term of the tender up to 5pm on the final day.  Any bids made in the last 10 minutes of the tender closing will automatically extend the tender by 10 minutes.  Further bids made during the extended tender period will automatically extend the tender for another 10 minutes.  This process will continue until no further bid is placed within the original bid period or any 10 minute extension period

Closed Portfolio Tender

A closed portfolio tender will suit a number of financial institutions who require the final sale price to remain confidential.

Each pre-selected bidder is permitted to make one bid only.

Sellers have the option to establish a tender along either of the following lines:

1.      Cash only, or

2.      Speciality offers (ie normally a mix of cash and upside profit sharing) seek

Where speciality offers are permitted, bidders will be required to upload their offer on the bid page for closed viewing by the seller.

Bids can be lodged up to 5pm on the final day of the tender and there will be no time extensions.

Semi Closed Portfolio Tender

The semi-closed system is a slight variation on the standard closed portfolio tender.

Bids must be lodged by 5pm on the final day. Thereafter, e-debttrading.com will contact the lowest bidders shortly thereafter to advise that they stand in the lowest 50 percentile of bids received thusfar and that they are entitled to make one further bid if they so wish prior to 5.30pm. Once they re‑bid and, if their bid is still in the bottom 50 percentile, they will be eliminated from the bidding process. The process will continue until two or three bidders remain at which point they will be notified and may re-bid one final time. The highest bidder will remain standing, and only then will the tender finally close.

Not only does this option improve the sellers potential to achieve a better price, it also allows bidders a final chance to acquire the portfolio.