Tuesday 31 January 2023

Hedge Fund Davidson Kempner Buys $1.1 Billion #AbuDhabi Commercial Bank Bad Debt - Bloomberg

Hedge Fund Davidson Kempner Buys $1.1 Billion Abu Dhabi Commercial Bank Bad Debt - Bloomberg

US hedge fund Davidson Kempner Capital Management bought $1.1 billion in bad debt from Abu Dhabi Commercial Bank PJSC as the lender cleans up a balance sheet battered by a series of corporate defaults.

The portfolio consists of 44 corporate loans to United Arab Emirates-based small- and medium-size enterprises, according to a statement. Davidson Kempner didn’t disclose the price at which it bought the non-performing debt.

ADCB, the third-largest lender in the UAE, was impacted by corporate collapses such as that of hospital group NMC Health Plc, payments firm Finablr Plc and construction company Arabtec Holding. Since lending to these firms, the bank has been tied up in restructuring talks and has been forced to write down the value of many of the loans.

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