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Report: Idea Bank mulls GetBack bond buyback from clients

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Report: Idea Bank mulls GetBack bond buyback from clients

Polish lender Idea Bank SA wants to buy back bonds issued by financially troubled debt collector GetBack SA from some retail investors who purchased the securities via the bank, Rzeczpospolita reported Jan. 7.

Idea could repurchase the bonds at par value, which means clients could recover their entire invested capital, the newspaper said, citing unofficial sources.

The lender was one of the main distributors of GetBack bonds. After GetBack collapsed in 2018, clients who purchased the bonds via Idea accused the lender of applying unfair practices when offering the securities.

Idea has approached 118 of its clients so far with a proposal to end the dispute, and 35 clients signed settlement agreements. Between 9,000 and 11,000 retail investors had acquired GetBack bonds.

GetBack is now undergoing restructuring. Under the most recent proposal, it could pay back between 23% and 34% of its financial obligations on the bonds, depending on which version of its restructuring plan will be approved.

In November 2018, GetBack selected Swedish financial services firm Hoist Finance AB (publ) as a preferred bidder for its assets, with the companies entering into exclusive negotiations. GetBack hoped to complete the negotiations in December 2018 and finalize the sale by the end of June 2019, news agency PAP reported at the time.