Reconstruction Capital II sells Top Factoring Group for €13.11m

AIM-listed investor Reconstruction Capital II has sold Top Factoring Group, made up of Top Factoring SA, a Romanian receivables collection company and the non-performing loan book held by its subsidiary Glasro Holdings, to Intrum Justitia AB for up to €13.11m.

The company received €12.83m on Wednesday, after the repayment of Glasro's bank debts, and is due to receive a further €280,000 on 4 May.

Following this, the company would have received €13.11m, which, excluding any costs, represents a gain €1.83m on the book value of its holding in the Top Factoring Group as at 28 February, and a profit of €16.29m on the total cost of its investment.

From the proceeds from the sale, €2.82m will be invested in Telecredit SA, a Romanian non-banking financial institution that provides consumer loans, and €1.13m will be used to repay a loan from Ion Florescu, chairman of Policolor and chief executive of EFG Eurobank Finance based in Romania.