Purchase of debt portfolios

The company Profidebt purchases whole packs of mature debts from business activities of banks, financial institutions as well as trading companies in natural as well as legal persons.

We are ready for a single purchase of large sets of debts and if a general contract is concluded, also for a purchase of debts in regular intervals without restricting the lower or the upper limit of their nominal value.

Price assessment:

The purchase price is calculated from the nominal value of debts on the basis of analysing the concerned debts and credibility of debtors. We prefer to purchase sets of debts with similar features, for example debts mature in 2006, debts from the same product, debts with same legal form etc. In order to provide better information, we state the expected range of purchase price offer by various levels of delay:

purchase price of debt from 90 to 180 days after maturity:	25 - 50% of NV,
purchase price of debt from 180 to 360 days after maturity:	25 - 40% of NV,
purchase price of debt more than 360 days after maturity:	10 - 25% of NV.

It is necessary to emphasize that the age of debts is only one of many factors affecting the purchase price.

In order to be able to offer an adequate purchase price for the offered debts, we need to get more information on debts:

• general information on the type of debts,
• information on contractual security,
• current manner of recovery, degree of legal recovery etc.,
• details of individual debts (presented preferably in an Excel file).

We need approx. 10 business days to analyse the debts. Then we present a binding offer of purchase price. If the offered purchase price is accepted, we are prepared to enter into the contract on debt assignment, in which we undertake to pay the purchase price within 5 days as of the date of the contract signing.