Skip to content
Subscriber Only
Markets
Deals

Hedge Fund Said in Talks to Buy $270 Million Monte Paschi Loans

The Banca Monte dei Paschi di Siena SpA's logo sits on a window at one of the company's bank branches in Rome, Italy, on Wednesday, Jan. 27, 2016. Italy's banking woes are set to plague Prime Minister Matteo Renzi for months to come after a long-sought deal with the European Union on bad debts disappointed investors.

The Banca Monte dei Paschi di Siena SpA's logo sits on a window at one of the company's bank branches in Rome, Italy, on Wednesday, Jan. 27, 2016. Italy's banking woes are set to plague Prime Minister Matteo Renzi for months to come after a long-sought deal with the European Union on bad debts disappointed investors.

Photographer: Alessia Pierdomenico/Bloomberg

Banca Monte dei Paschi di Siena SpA, whose survival may depend on a bailout from Italy, is in exclusive talks to sell a batch of non-performing loans to York Capital Management LP, according to a person with knowledge of the matter.

The loans have a face value of 240 million euros ($270 million) and were made to Impreme SpA, a property developer owned by Rome’s Mezzaroma family, said the person, who asked not to be identified because the talks are private. York Capital, a New York-based hedge fund, is offering more than 40 cents on the euro for the debt, the person said.