Northern Rock’s bad bank selling assets to JC Flowers

City A.M. Reporter
PRIVATE equity group JC Flowers is set to buy a portfolio of £450m Northern Rock loans from the bad bank part of the lender.

UK Asset Resolution (UKAR) is expected to sell the loans to One Savings Bank, owned by JC Flowers, for around £300m.

UKAR exists to wind down the bad loans built up by lenders like Northern Rock and Bradford and Bingley in the boom years before the financial crisis.

Last year Virgin Money bought £465m of the loans, and this latest purchase would mark a step up in the wind-down of the unit.

It came after Virgin bought the more sustainable good bank part of Northern Rock, launching a new high street challenger bank with the remnants of the broken mortgage lender.

“In line with our stated strategy of winding down the loan book, we will talk to parties interested in acquiring elements of the companies’ loan books,” UKAR said.