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Britain's 'bad bank' sells assets to Cerberus Capital

Britain's 'bad bank', which is running down the loans of two bailed out lenders, said it had agreed to sell a 13 billion pound ($19.78 billion) asset portfolio to affiliates of Cerberus Capital Management LP.

Customers enter a branch of the Northern Rock bank in Norwich, Norfolk, U.K., on Friday, Sept.14, 2007.Northern Rock Plc got emergency funding from the Bank of England, the biggest bailout of a British lender in 30 years, after a freeze in money markets left the mortgage provider unable to finance itself.
Si Barber | Bloomberg | Getty Images
Customers enter a branch of the Northern Rock bank in Norwich, Norfolk, U.K., on Friday, Sept.14, 2007.Northern Rock Plc got emergency funding from the Bank of England, the biggest bailout of a British lender in 30 years, after a freeze in money markets left the mortgage provider unable to finance itself.

The sale includes performing and non-performing residential mortgages and unsecured loans from the legacy book of NRAM, the former Northern Rock mortgage business, UK Asset Resolution Ltd (UKAR) said.

UKAR, a state-run 'zombie bank' that does not take on new business, said the sale brought its balance sheet reduction to 73.5 billion pounds, or 63 percent since formation in 2010.

The bank was advised by Credit Suisse International, a subsidiary of Credit Suisse AG.