News Column

Final bids due as NAB sells off non-performing loans

July 19, 2014

NATIONAL Australia Bank's sale of a portfolio of Clydesdale and Yorkshire bank loans is drawing interest from four parties, including Oaktree Capital Management and PIMCO, according to a report in Australia.

It said final bids for "Project Chestnut" - NAB's sale of a pound(s)674 million batch of non-performing loans -were due yesterday. The other interested bidders were said to be CarVal Investors and Cerberus Capital Management. The bank declined to comment.

Two years ago, Clydesdale and Yorkshire transferred property- backed loans valued at pound(s)5.6 billion to NAB in Melbourne, prompting claims from small business borrowers that facilities were being withdrawn and defaults engineered to enable the calling-in of loans, claims denied by the bank. The loan book is now said to be at pound(s)3.3bn.

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Source: Herald, The (Scotland)

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