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View the article online at http://citywire.co.uk/wealth-manager/article/a602935

Lloyds in talks to ditch £1bn toxic asset portfolio

by Dylan Lobo on Jul 09, 2012 at 07:56

Lloyds in talks to ditch £1bn toxic asset portfolio

Lloyds is reportedly in talks to sell £1 billion of toxic loans it inherited through its acquisition of HBOS in 2008.

According to the Sunday Times, the projected – codenamed Lundy, will see the bank attempt to sell off a number of businesses HBOS rescued at the height of the credit crunch. These include hotel chain Menzies, packaging company Linpac and housebuilder McCarthy & Stone.

The portfolio is said to comprise around 40 assets, with sources saying Lloyds could forced to take a 30% writedown.

According to the paper, the portfolio has attracted interest from private equity firm Electra and two American vulture funds, Centerbridge and Lone Star.

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