Bloomberg News reports that the bank led a group of banks that extended up to $500m three years ago to Petroceltic International, helping the Irish oil and gas explorer develop its prized gas field in the southeast of Algeria.
With the company now facing a collapse in energy prices and locked in a feud with an ex-Deutsche Bank trader-turned-activist shareholder, HSBC has sold its loans at about 30% of face value, according to people with knowledge of the sale.
“A lot of these smaller, independent companies are really stressed under the current oil price,’’ said Victoria McCulloch, an energy analyst in Edinburgh with Royal Bank of Canada. “This year is going to be tough for the banks that lent to them.”
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