Debtor engagement

NAMA requires each debtor to submit a business plan

NAMA manages the largest 180 debtors (accounting for €61 billion in acquired nominal loan balances) directly and its engagement with these debtors begins shortly after loan acquisition. Initial meetings are held during which a debtor is introduced to the NAMA portfolio management team dealing with his debt and preliminary discussions take place in relation to projects and plans.

NAMA requires each debtor to submit a business plan whose primary purpose is to present a complete account of his financial affairs and to provide a detailed plan of how and when all liabilities to NAMA will be repaid.

The debtor’s business plan is normally reviewed by an independent business reviewer (IBR) who assesses the reasonableness of assumptions used by the debtor, conducts a detailed analysis of cashflow projections and presents an independent critique of the plan. NAMA has appointed a panel of 38 firms from which IBRs may be appointed, if required. The plan and the associated IBR review are then considered by the NAMA Board, Credit Committee, Chief Executive or senior management, based on a cascading system of delegated authorities approved by the Board. Other factors taken into account at this stage include the degree of the debtor’s co-operation with NAMA and the quality of his corporate governance arrangements.

The business plan process will lead ultimately either to approval of the debtor’s business plan (possibly subject to changes and the imposition of certain conditions) or to enforcement. The latter will apply in the case of debtors who are unable to prove that they have the capacity to meet their debt obligations (even if restructured) or where they have failed to co-operate with the process. Enforcement is not NAMA’s preferred option as its stated objective is to try and achieve a consensual workout with as many debtors as possible.

Credit activity continues while this process of engagement with debtors is underway. For example, almost 1,000 significant credit applications were assessed and sanctioned or rejected between March and December 2010 including applications for new money, new lease approvals and applications to dispose of assets. NAMA also granted approval for the disposal of €1.9 billion of property during 2010.

Please find below the most recent version of the Form A to be completed by Debtors for credit applications and a guidance note on using the Form. Should you have any difficulties downloading these documents please contact NAMA.

NAMA Form A - Credit Applications (82.9 KB, doc format)

NAMA Form A - Guidance Note (35.6 KB, pdf format)

Disposal of Real Estate Assets Guidance Note (285.5 KB, pdf format)