US hedge fund Davidson Kempner Capital Management has bought $1.1 billion portfolio of bad debt from Abu Dhabi Commercial Bank (ADCB) consisting of 44 corporate loans to United Arab Emirates-based small- and medium-size enterprises, according to a report by Bloomberg.
Davidson Kempner, which has about $36 billion in assets under management, has not released financial terms of the deal. The hedge fund hired Seapoint Capital Ltd. as the special servicer and Reviva Capital as loan servicer for the transaction.
ADCB, the third-largest lender in the UAE, is actively looking to clean up its balance sheet after being impacted by a number of corporate collapses including hospital group NMC Health Plc, payments firm Finablr Plc and construction company Arabtec Holding.
