Posted by: youngragingbull | April 27, 2013

Credit Suisse, Lone Star to buy $8.7B of toxic assets

Credit Suisse Group AG and Texas- based Lone Star Funds will pay 6.7 billion euros ($8.7 billion) for the assets of Royal Park Investments SA, a vehicle set up to manage toxic assets of failed Belgian bank Fortis.

The government of Belgium, one of the vehicle’s shareholders, will get 1 billion euros in cash from the sale, reducing government debt by more than 0.2 percent of gross domestic product, Finance Minister Koen Geens said in a statement. Ageas, the insurer formerly known as Fortis, will receive 1.04 billion euros, it said in a separate statement.

Royal Park Investments was set up in May 2009 by Fortis, the Belgian government and French bank BNP Paribas SA as a special purpose vehicle to manage a pool of distressed debt securities. The shareholders contributed 1.7 billion euros in equity at the time. That amount had increased to a net asset value of 2.3 billion euros, Royal Park Investments said today.

Fortis, once Belgium’s biggest financial-services company, became a casualty of the 2008 financial turmoil after pouring 24.2 billion euros into purchasing the assets of ABN Amro Holding NV a year earlier, just as the U.S. subprime-mortgage market collapsed and lending dried up.

Source: Bloomberg

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Responses

  1. Reblogged this on Mas Bagja.


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