Barclays To Shift $12.3B In Toxic Assets To Fund

Law360, New York (September 16, 2009, 7:05 PM EDT) -- Barclays PLC announced Wednesday it had sold $12.3 billion in illiquid assets to a fund set up by former executives of the U.K. bank's investment arm as part of an ongoing strategy to minimize its exposure to volatile credit markets.

The sale to the newly established Protium Finance LP was funded by a $12.6 billion 10-year loan from Barclays and another $450 million from Protium's partners, who will pocket any net cash flows following repayment of the loan, Barclays said.

The bank said the sale would...
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