Dear customers, in accordance with the requirements of the Law on the Introduction of the Euro in the Republic of Bulgaria, DCA applies dual displays of the amounts related to your debts, as well as the prices of DCA assets listed for sale. All amounts will be shown in leva and euro until 08.08.2026. You can find more information by clicking the "See more" button.
See more

Debt purchasers save businesses and jobs

Bridging the gap caused by defaulted debt
The Storseisund bridge at the Atlantic Road. Located at the north west coast of Norway

Debt purchasers play a key role for handling businesses’ debt problems by bridging the gap that defaulted debt represents in the credit chain and by really helping defaulted enterprises stabilize their finances, saving jobs and operations.

Erik Johnsen, CEO of Norway-based B2Holding, the owner of Debt Collection Agency EAD, has recently given a concrete example in this regard during a presentation (check out👉here/Presentation at the Arctic Nordic Debt Collection Webinar). The presentation has been made at a webinar focused on the purchase and collection of receivables in the Nordic countries. Erik Johnsen has presented the experience of B2Holding in a case related to a company operating in the area of production, processing, preserving, sale and distribution of fruits and vegetables. 

The agro company has obtained a mortgage loan secured by agricultural and industrial real estate. In spite of the operating profit it has been generating, the plant has barely registered a positive net profit due to the high leverage and overindebtedness. As a result, soon the agro company has started to overdue its payments and has fallen in insolvency. The defaulted debts at the amount of €10M have been purchased by B2Holding. The main shareholder of the agro company has been a personal guarantor and highly interested to find a solution to the problem in order to repay the debt. Therefore, he has contacted the creditor actively and kept a constant dialogue with him.

According to the original basic and classic scenario – liquidation of the company and sale of the pledged assets secured by collaterals, B2Holding expects to recover €3.7M in 2 years. The creditor, however, has developed a second, alternative approach based on the leading positions of the defaulted agro company in the sector it operates and the interest of its owner to save its business and stabilize it through active operations in this regard as well as the potential to keep 300 jobs. In this scenario, B2Holding also counts that it would avoid the time consuming and value reducing liquidation process.

Stepping on the alternative second scenario and upon negotiations, B2Holding reached an agreement with the debtor to get a cash payment of €6.1M once the agro company stabilizes its finances. At the end of the day, the enterprise has come out of the crisis it had fallen and saved its operations. More than 300 people have kept their jobs. Additionally, the creditor itself has gotten €6.1M in 9 months, thus improving significantly its original strategy and expected results.

Learn more 👀 in the presentation of Erik Johnsen, CEO of B2Holding 👇.