BNP Among Banks Facing $172 Million Loss as Oil Tycoon Fails
- Group including ING, Barclays boosted First Oil loans 2013-14
- Bank of Nova Scotia says it has `exited its position' in loan
BNP Paribas SA and its partners in a Scottish energy loan are staring at a loss of 122 million pounds ($172 million) after entrepreneur Ian Suttie’s venture went bankrupt, illustrating the wreckage banks are likely to face from the oil bust.
First Oil Plc, an Aberdeen-based operator in the North Sea, entered U.K. bankruptcy protection in February. While the lenders are jointly owed about 149 million pounds, they may only receive about 27 million pounds in proceeds from asset sales, according to Bloomberg calculations based on bankruptcy filings. The banks, which include Barclays Plc and ING Groep NV, agreed to accept the writedown on April 4, a filing shows. Bank of Nova Scotia has “exited its position” in the debt, spokeswoman Diane Flanagan said.