The UK sells what remains of Northern Rock a decade after its nationalization

British government Get rid of your recent assets In the public hands of the former Northern Rock, nationalized in February 2008, as well as Bradford and Bingley, which was nationalized in September of the same year, For 5 billion pounds (5,760 million euros), as confirmed by the British Treasury, that And so, after more than a decade, it closed one of its most controversial chapters in the financial crisis From 2008-2009.

The sale is an important milestone.Announced Treasury Secretary of the Economy, John Glenn, who invoked the government’s promise last March to return both entities to private hands. “We did just that,” he said.

UK Asset Resolution (UKAR), the entity created in 2010 to manage the sale of the assets of the nationalized entities, has reached an agreement to sell issued capital to Bradford & Bingley plc (B&B) and NRAM, which collects the assets. Remaining from ancient Northern Rock, To a consortium formed by Davidson Kempner Capital Management and Citibank.

Chronology of the Crisis Affecting Northern Rock

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“This sale ends government ownership in B&B and NRAM, including their loans, with taxpayers fully repaid and restoring the legal and regulatory responsibility of operating companies to the private sector,” UKAR noted.

The public entity has made this clear The transaction will be completed in two stagesThe loan sale to Citi will happen first and is expected to be completed in the coming weeks, while the second phase will be the completion of the sale of the two entities’ ownership to Davidson Kempner, which is expected to take place in the summer.

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The UK Treasury and UKAR insisted that although the sale involved a change in ownership of B&B and NRAM properties, Clients don’t need to take any action There will be no changes to loan terms or transactions as a result of the process.

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