An energy ministry draft bill concerning power utility PPC’s restructuring, forwarded for public consultation yesterday, includes terms offering the utility legal protection for its plan to securitize unpaid receivables.
The terms are designed to counter various arguments that could be raised by defendants, including breach of personal data, through the European Commission’s General Data Protection Regulation (GDPR).
PPC is planning to securitize unpaid receivables for sale to funds. The protection terms are intended to quell any fears of prospective buyers.
Prospective buyers are currently conducting due diligence via PPC’s data room. A large number of funds are believed to be interest in the power utility’s sale of securitized unpaid receivables, sources informed.
PPC has toughened its stance against debtors believed to be capable but unwilling to cover their electricity bill arrears, the objective being to present prospective buyers an improved collection record.
Investors are expected to submit offers to PPC once all data has been fully analyzed. It will then be up to the power utility to decide if it will go ahead with its securitization effort.
According to an early plan, two respective packages containing 60 and 90-day packages of unpaid receivables worth a total of between one and 1.5 billion euros could be offered to investors.