For a combined total of US$615 million, UK Asset Resolution will be selling its Northern Rock loan portfolio for a total of US$615 million (GBP400 million) to J.C. Flowers and Marlin Financial. Dubbed as Britain's "bad bank", UKAR is currently not taking on any new business. Aside from Northern Rock, it is also in the process of winding down the loans of Bradford & Bingley. In a Reuters report, the bank has said that the sale will benefit taxpayers and won't affect the terms and conditions of the loans of 140,000 customers.
Part of the Northern Rock portfolio will be sold to OneSavings Bank, a regional lender owned by J.C. Flowers, which is a private equity firm based in the U.S. Debt recovery business firm Marlin Financial will take care of buying the remaining performing loans. No information was given on how much each company will purchase the portfolio for. Northern Rock was nationalized during the 2008 economic crunch.
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