AIB gears up to launch $2bn Project Redwood loan sale
First Trust Banks’ parent company AIB is preparing to launch the largest non-performing loan sale in its history next month. It is understood loans with a face value of close to £1.8bn will be marketed for sale at the end of November, in a process dubbed Project Redwood and covers borrowers north and south. Primarily the sale is to "improve” the balance sheet of the Bank as required by the ECB. Yet again, instead of working with borrowers, the Bank are taking the easy exit option - Easy for them but not the borrowers.
Sources have said a smaller portfolio of non-performing loans at the bank – initially earmarked for a separate sale – have also now been folded into Project Redwood. The bank remains on course to offload a further €300m worth of impaired loans by December, underscoring its determination to radically reduce its legacy book – a move that in turn frees up capital and increases the prospect of a special dividend.
Hundreds of staff within AIBS's loan work-out unit - the Financial Solutions Group (FSG), which manages distressed loans across the group - are understood to be working on Project Redwood, as it races to conclude a deal ahead of annual results in March.
AIB declined to comment on the sales. But a bank spokesperson said in the first half the lender has cut its impaired loans - the most troubled portion of its NPE book - from roughly €9.1bn to €7.8bn.
This will affect First Trust Customers and the smaller Project Pine book contains soured loans linked to assets in the UK, with over half the debts tied to assets in the North.
What can I do now?
If you are an AIB / FTB account holder then it is imperative that you are prepared for more enforcement of loans, calls on personal guarantees and asset sales. It is important that you ACT now if your loan is to be included in this sale. Subsequently, it is very important to take advice in this regard from a regulated team of debt advisors to plan for the future.
What we can do to help?
Since 2010, GDP Equity Experts have helped 100’s of families, individuals and businesses deal with debt related issues. We have been leading the way in this specific matter over the last few years. As a result, our team are more than ready to engage and assist if you have been affected by this.
Solutions are available and it can be quite empowering once one works out the different options open to them and, moreso, what the likely purchaser of this loan book will expect. Our team have significant experience in this area as we have restructured hundreds of millions of pounds worth of loans in the last seven years. We know what is expected and how to get you to where you want to go. In short, we WANT to hear from you today.
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