Mexican development

By introduction of a broker from Germany, the AVIS Group got involved in a financial transaction whereby USD$200Million should be refinanced in form of a Standby Letter of Credit issued by a first class bank in Mexico. The broker was aware that the AVIS Group maintain seams years strong relations in Mexico and established there a Franchise network for the developing of waste facilities. 

After the investigation and conversation with the issuing bank in Mexico, the AVIS team members could learn that the entire transaction is correct, but totally wrongly done and the issuing bank will not be able to follow up a correct validation.

By further investigation, the AVIS teams did find out, that behind the business were a historical large government portfolio, deposited in 95 custodial accounts in the year 1990. The bank was unhappy that brokers trying to misuse constantly the historical assets deposited by the Mexican syndicate at Grupo Financiero Bital S.A. That Bank were acquired in 2002 by HSBC Mexico. Mr. Pechstein, missing of banking experience, located in Mexico, the son of the syndicates trusty, was not able to process these large bank deposits. He got mixed up with brokers and lawyers. Instead, in finance of infrastructure, they misused the assets. That brought heavy legal and payment responsibilities problems to the bank. The bank sued the trusty for non-authorized account assignments and asset misuse. As a result, when AVIS came into the picture, HSBC was happy to learn about the construction project in Mexico and transferred 5 clean accounts to the AVIS Group. In 2017 AVIS team members advised the bank, based on their experience, how it should be the right form for using the assets correctly and the transaction fits with the bank's interested in green projects. 

During three months until the end of the year, the AVIS Group structured USD$20 billion cash CDs in 5 accounts with the bank and transferred these assets to London. The trustee has been recompensed and the AVIS Group used the cash assets as share capital for the AVIS Group and its subsidiaries. 

Thousands of documents, certifications, notary processing's and hundreds of peoples got involved finally into the transaction.