MILAN (Reuters), Italy’s largest bad-loan firm doValue has been discussing a potential extension to its UniCredit contract, but it is making prudent assessments about future problems debts that the Italian bank might send its way.

DoValue in Verona, owned 28.3% by Japan’s SoftBank Group was established in 2015. It was created when UniCredit split off its debt servicing division in a deal that involved Fortress Investment Group. This U.S. fund was later acquired by SoftBank.

UniCredit was present when doValue entered into a debt management agreement that has given doValue a stable revenue stream.

Later on, the company worked hard to grow its business and moved into Greek and Spanish markets for non-performing loans.

Equita, a Milan-based broker, has highlighted potential risk for doValue following Reuters’ report that UniCredit had been in discussions with Prelios about a portfolio of 2 billion euros worth “unlikely pay” loans.

UniCredit received offers late last year to manage a UTP portfolio worth 1 billion Euros. The bank wanted to evaluate the partner’s performance compared to its in-house collections before considering any further UTP deals. Sources close to the matter told Reuters.

UniCredit did not comment.

According to sources, Prelios was expected to win over doValue, as it offered to not only manage the loans but also lined up investors who would buy double the amount of the original portfolio. Prelios refused to comment.

Andrea Mangoni from doValue, CEO of doValue, downplayed risks associated with UniCredit’s UTP deal on Friday in a post–results analyst conference call.

“First of all, our current projections for new non-performing loans from UniCredit inflows are extremely conservative,” said he.

“Second: We’re currently talking with UniCredit about the extension of [our current] contract regarding size.”

The UTP disposal is currently underway has no impact on our results.