US hedge fund Davidson Kempner Capital Management LP has purchased approximately $1.4bn in non-performing loans from Abu Dhabi Commercial Bank PJSC, its second major distressed debt transaction with the lender, according to a report by Bloomberg.
The report cites unnamed sources familiar with the matter as revealing that the portfolio includes a mix of secured and unsecured assets. ADCB and Davidson Kempner declined to comment on the transaction.
This deal follows a landmark $1.1bn non-performing loan sale from ADCB to Davidson Kempner two years ago and forms part of the bank’s ongoing efforts to clean up its balance sheet, which has been affected by several high-profile corporate defaults, including NMC Health Plc.
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