U.S. hedge fund buys Lloyds debt in NCC -Sky News
Feb 17 (Reuters) - U.S.-based Anchorage Capital Group has acquired about 80 million pounds ($134 million) of debt from Lloyds Banking Group for a controlling stake in New Century Care (NCC), one of Britain's biggest care home groups, Sky News reported on Monday.
An insider told the news service that Lloyds' decision to offload the debt it had held in NCC for several years is part of a financial restructuring in which the group is divesting assets held on its balance sheet. ()
Lloyds Banking Group and Anchorage Capital Group could not be reached for a comment outside of regular business hours.
"Anchorage Capital Group will work alongside NCC's founder, Paul Warren, who will retain a significant stake in the company, to support the growth and development of the business", the care home group said on its website.
Sources told Sky that NCC does not have any other debt left after Anchorage agreed to swap loans it bought from Lloyds into an equity position.
New Century Care, which operates 27 care homes across the United Kingdom, was founded in 1995 and provides long-term care to people with dementia and specialist nursing needs.