UK Asset Resolution Ltd., which owns the U.K.’s fully nationalized banks, said it agreed to sell a portfolio of Northern Rock Asset Management Plc’s personal loans for 400 million pounds ($613 million).
Performing loans are being bought by OneSavings Bank Plc, while “the remainder” are purchased by Marlin Financial Group Ltd., London-based UKAR said today in a statement. Marlin Financial Group, based in London, buys distressed debt.
Northern Rock Plc separated from Northern Rock Asset Management in 2010 and was bought by Richard Branson’s Virgin Money Holdings U.K. Ltd. for an initial 747 million pounds. NRAM will use the money to pay down its loan from the government, according to the statement. It will write to the 140,000 customers affected by the deal.
UK Asset Resolution, formed in October 2010, repaid 4 billion pounds to taxpayers in 2012, it said in March. Northern Rock was nationalized four years previously.
-- Editors: Simone Meier, Dylan Griffiths