KKR to launch bad-loans vehicle with Intesa, Unicredit

The vehicle will manage restructured loans owed to Intesa Sanpaolo and Unicredit by beleaguered businesses. Press reports suggest that each lender will contribute loans worth €1bn to the vehicle, which will also receive a contribution from KKR.

The trio is working with turnaround specialist Alvarez & Marsal on the initiative, which is currently under discussion.

Intesa posted a large loss of around $7bn in the fourth quarter due to write-downs on bad loans and the value of previous acquisitions. In March, Unicredit announced fourth-quarter losses totalling $21bn. The banks are currently aiming to strengthen their balance sheets ahead of a regulatory review.

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• Topics
• Southern Europe
• Italy
• KKR
• Alvarez & Marsal
• UniCredit
• Intesa Sanpaolo