Banco Santander has completed a major deal in Chile by selling US$455 million of non-performing loans to a private fund owned by Sociedad de Inversiones Norte Sur.
Santander invited the LAWorld member for Chile, Fermandois, Evans & Cía, to be their in house legal adviser in the deal, which saw Norte Sur paying US$18.2 million for the non-performing consumer loans. The deal closed on November 2009.
Arturo Fermandois, Partner with Fermandois, Evans & Cía, led the team advising the seller. “The deal was particularly challenging because it required carefully adapting the agreement to the rules issued by the Chilean Banking Authority and satisfying the interest of purchaser and seller,” he says. “In a business strongly affected by time, as payments were changing day by day the value of the portfolio, the legal teams put in creativity and efficiency to reach to a successful ending.”