Corstone’s third purchase of NPLs totaling over USD $260 million

Beijing, China, and Washington, D.C.
Corstone Capital (Corstone) today announced a closing on the purchase of a portfolio of non-performing loans (NPLs) totaling over 2 Billion RMB (US $260 Million) in China.
This is Corstone’s third purchase of an NPL portfolio and its first purchase from China Huarong Asset Management Corporation.  The latest transaction increases Corstone’s interests in Chinese NPLs to over US $1.2 Billion.
Albert “Bud” Hawk, Chairman and Managing Partner, said that the transaction underscored Corstone’s strong commitment to China. Michael D. Helmicki, General Partner, commented, “We are excited by the continued expansion of Corstone’s investment in China’s distressed debt market.  Corstone continues to be bullish on the China NPL market, where we see great growth potential in the years to come.”

Goodmorning Shinhan Securities and Shinhan Bank were co-investors in the syndicated transaction.
China Huarong Asset Management Company was formed in 1999 as an independent legal entity and a wholly state-owned financial institution.  It is the largest of the asset management companies established by the Chinese government to purchase, manage, and resolve the NPLs accumulated under a planned economy system by the state-owned commercial banks.
Corstone Capital is a private international investment firm focusing primarily on NPL assets, real estate-related assets, and operating companies in Asia.  Corstone is headquartered in Washington, DC and has correspondent offices in Singapore, Beijing, Shanghai, Nanchang, and Seoul.

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