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PRESS: Oil Price Fall Leaves Barclays Facing Potential Loan Losses - FT

LONDON (Alliance News) - Barclays PLC and Wells Fargo Inc are facing potentially heavy losses on ...

Alliance News 27 November, 2014 | 12:47PM
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LONDON (Alliance News) - Barclays PLC and Wells Fargo Inc are facing potentially heavy losses on a USD850 million loan made to two oil and gas companies on the back of the fall in the oil price, the Financial Times reported on Wednesday.

The two banks led a USD850 million bridge loan earlier this year to help finance the merger of Sabine Oil & Gas and Forest Oil, two US-based oil companies.

Investors showed lacklustre interest in buying the loan when it was offered first in June, and the slumping oil price and volatile credit markets in the months since have scuppered further attempts to sell, or syndicate, the loan, according to market participants, the FT said.


By Sam Unsted; samunsted@alliancenews.com; @SamUAtAlliance

Copyright 2014 Alliance News Limited. All Rights Reserved.

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Securities Mentioned in Article

Security Name Price Change (%) Morningstar
Barclays PLC 165.00 GBX 0.61

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