German lender Nord/LB will establish an internal “bad bank” to wind down €7.7bn ($8.68bn) of shipping assets.
The decision is a blow to Hamburg and Kiel-based Portfoliomanagement, the warehousing bank that has been negotiating to take a slice of the Nord/LB shipping portfolio onto its books.
Nord/LB's move comes after the Hanover-based bank last week unveiled that it would pull out of ship finance completely.
