Alpha Bank in talks with Cerberus, PIMCO to sell $11 billion of bad loans, say sources

Greece's Alpha Bank is in talks with at least five US investment firms including Cerberus and PIMCO in a fresh attempt to offload a portfolio of bad debt worth more than 10 billion euros ($11.3 billion), two sources told Reuters.

The portfolio, known as Galaxy, consists of retail loans worth 7.6 billion euros plus loans to medium-sized and large corporate clients worth 3 billion euros, the first source said.

Alpha, the fourth largest bank in Greece, could earn 400 million to 500 million euros from the sale, the second source said.

Alpha launched the process, which includes the sale of loan servicing platform Cepal, early this year but halted negotiations as the coronavirus crisis struck.

It has asked bidders to submit tentative offers by June 29, the second source said.

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