UK Asset Resolution (UKAR), the government agency responsible for winding down Northern Rock and Bradford & Bingley after their nationalisation, has sold some £450m of Northern Rock loans to US private equity firm JC Flowers.
Flowers is understood to have paid about £300m through One Savings, its small regional lender.
Northern Rock's business was split into two companies in 2010 after it was nationalised: assets and banking. Richard Branson's Virgin Money acquired the plc in November 2011, while a book of old loans were handed over to UKAR to run down.
In a separate deal, a debt collection business has also acquired £450m of Northern Rock loans for less than a quarter of their value, reported the Times.
Marlin Financial, which describes itself as the UK's "leading litigation specialist debt buyer", won the auction to purchase the book of unsecured loans from UKAR, and will pay about £100m for it.
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