US investor JC Flowers to buy Northern Rock loans

US private equity investor JC Flowers is in the final stages of buying £450m of Northern Rock loans from the UK government, the Financial Times has reported today.

Amy Loddington
18th July 2013
US investor JC Flowers to buy Northern Rock loans

The portfolio to be sold to JC Flowers consists of unsecured loans and represents less than 1 per cent of the overall loan book run by state-owned body UK Asset Resolution.

UKAR is a 'zombie bank' which does not take new business - it is responsible for winding down the loans of now-defunct lender Northern Rock Plc and Bradford & Bingley, which the government bailed out during the 2008 financial crisis.

The Financial Times has reported that JC Flowers is expected to pay about £300m for the loans – about two-thirds of their value and said JC Flowers were expected to buy the Northern Rock loans through its One Savings operation, which was launched as a way to invest in the Kent Reliance building society in 2010.

 

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