Colony Capital Group Wins Bidding for FDIC Distressed Loans

A joint venture between Tom Barrack's Colony Capital LLC and Cogsville Group LLC won the bidding for a portfolio of distressed real-estate loans auctioned off by the Federal Deposit Insurance Corp.

The two companies will purchase a 40% stake in a $1.85 billion portfolio of commercial-property loans held by now-defunct banks such as Community Bank of Nevada and New Frontier Bankreported. The deal, announced today, is the second-largest bulk sale of commercial-property debt under a public-private partnership, according to The Wall Street Journal.

The investment group will pay 59 cents on the dollar, or $445 million, for the stake. The FDIC, which retains the other 60% of the portfolio, is offering the investors zero-interest financing. That means the consortium will have to pay $218 million up front. Cogsville will contribute $16 million.
Read Full Story

Can't get enough personal finance tips?

Sign up for Finance Report by AOL and get everything from consumer news to money tricks delivered directly to your inbox daily!

Subscribe to our other newsletters

Emails may offer personalized content or ads. Learn more. You may unsubscribe any time.