Hedge Fund Davidson Kempner Said to Buy Bad Debt from UAE Bank

Davidson Kempner Capital Management LP has acquired about $1.4 billion in bad debt from Abu Dhabi Commercial Bank PJSC, people familiar with the matter said, the second such transaction between the US hedge fund and one of the emirate’s largest lenders.

The loan book included a mix of secured and unsecured assets, the people said, declining to be identified as the information is confidential. Bloomberg News had first reported the Abu Dhabi-based bank’s plans to offload the debt in March.