Omni Bridgeway Leads the Way: Unlocking Value from Complex Non-Performing Loans with Innovative Legal Recovery Strategies

In today’s regulatory and financial environment, resolving complex non-performing loans (NPLs) is no longer optional - it’s strategic. Around the world, banks are being compelled to move from passive provisioning to active resolution, particularly when it comes to long-defaulted or legally entangled exposures classified as Stage 3 under IFRS 9.

Enter Omni Bridgeway, the global leader in legal finance and risk management with a reputation for tackling precisely these challenges - through bespoke legal enforcement solutions, creative structuring, and highly attractive pricing.

Nowhere has Omni Bridgeway’s value been more clearly demonstrated than in Africa, where it recently executed a first-of-its-kind transaction that unlocked value from NPLs in a market that had never seen structured assistance for distressed debt.

The African NPL Securitization: A Case Study in Innovation

In 2024, Omni Bridgeway established Africa’s first securitization fund dedicated to distressed assets. The fund acquired a portfolio of NPLs from a Moroccan bank - marking a landmark development in the country’s financial history.

This was far more than just a capital injection:

• Omni Bridgeway was the exclusive investor, providing the funding necessary to acquire and pursue recoveries on the NPLs;
• It also acted as recovery manager, bringing its cross-border litigation and enforcement expertise to the forefront;
• The fund was structured in compliance with Moroccan securitization laws, with Omni Bridgeway collaborating closely with the Moroccan authorities on a creative framework tailored to the regulatory and commercial landscape.

The result? A clear demonstration of how Omni Bridgeway can open entirely new pathways for NPL resolution - even in markets previously untouched by such tools.

Why Omni Bridgeway Adds Strategic Value

What sets Omni Bridgeway apart is not just the ability to fund litigation, arbitration and/or enforcement, but also its ability to partner with financial institutions to resolve highly complex distressed exposures. Omni Bridgeway brings: 

1. Expertise with Stage 3 IFRS 9 Loans

Omni Bridgeway focuses on loans that are deeply distressed (typically classified under IFRS 9 as Stage 3) where default has occurred, and enforcement or recovery action is necessary. These loans require lifetime expected credit loss (ECL) provisioning, exerting significant capital pressure on banks.

By funding enforcement or purchasing loans outright, Omni Bridgeway helps banks:

• Establish credible recovery plans;
• Satisfy regulatory expectations for active resolution;
• Reduce balance sheet burden and capital drag.
  

2. Tailored Structuring and Flexibility

Omni Bridgeway doesn’t apply a one-size-fits-all model. Instead, it works with banks to design bespoke solutions that fit their needs and strategic objectives. These can include:

• Outright purchases of individual NPLs or portfolios;
• Contingent pricing structures that allow banks to retain upside;
• Joint ventures or co-investment models;
• Securitization-friendly structures, as demonstrated in Morocco.

This structuring creativity is crucial for countries that are still developing secondary markets or regulatory frameworks for NPL resolution.

3. Operational and Legal Execution

Omni Bridgeway goes beyond providing capital - it takes hands-on responsibility for managing recovery of NPLs. Its global litigation network and deep asset recovery expertise allow it to navigate complex legal disputes, fraud cases, and cross-border recovery with precision.

For financial institutions, this means:

• Reduced internal legal burden;
• Access to best-in-class recovery capabilities;
• A trusted partner capable of managing the full life cycle of a distressed asset.

Meeting Global and Local Expectations

As regulatory scrutiny increases globally, Omni Bridgeway is well-positioned to help banks comply with both international accounting standards and local supervisory frameworks.

• In the EU, the prudential backstop forces full provisioning on NPLs within set timelines - Omni Bridgeway offers early exit strategies to manage these exposures.
• In the UAE, the Central Bank’s 2024 rule requires action on five-year defaulted loans - Omni Bridgeway can support banks with litigation-driven recoveries or structured exits.
• In Africa, the Moroccan transaction has shown how Omni Bridgeway can help develop entirely new NPL resolution ecosystems from the ground up.

Conclusion: Omni Bridgeway is a Strategic Recovery Partner

For banks facing mounting regulatory pressure and holding portfolios of legally complex, long-defaulted loans, Omni Bridgeway offers more than just funding. It offers:

• Strategic clarity;
• Recovery expertise;
• Regulatory alignment;
• Creative structuring;
• Operational execution.

The Moroccan securitization deal is a proof of concept - a compelling example of how Omni Bridgeway can pioneer solutions in untapped markets, provide regulatory-compliant recovery frameworks, and create value where others have only seen write-offs.

In a world where legacy NPLs can become strategic liabilities, Omni Bridgeway turns them into recovery opportunities.

Author:

Marijn Flinterman brings extensive expertise in distressed debt and non-performing loans, leading recovery and work-out strategies at Omni Bridgeway. With a track record of unlocking value from complex insolvencies, restructurings, and fraud-related claims, he partners with financial institutions, liquidators, and creditors worldwide to finance and resolve challenging portfolios.

Need support navigating distressed debt or pursuing recoveries?
Get in touch with Marijn and explore how Omni Bridgeway can help.