As announced on 13 November 2015 UK Asset Resolution limited (UKAR) agreed to sell a £13bn asset portfolio from the legacy book of NRAM (including £12bn of loans within the Granite securitisation vehicle, plus a further £1bn of non-Granite assets) to affiliates of Cerberus Capital Management LP (Cerberus).
On 30 April 2016, assets and liabilities not included in the sale transferred from NRAM plc to a newly established subsidiary of UKAR – NRAM (No.1) Limited and UKAR today confirms that on 5 May 2016 Cerberus will acquire NRAM plc as part of the sale completion process. As a result the government will receive the final £520 million as part of the conclusion of this sale.
At that time the current Non-Executive Directors of NRAM plc will resign from the Board, however, to ensure a smooth transition between 5 May 2016 and final completion the Executives, Richard Banks and Ian Hares, will remain on the Board of NRAM plc as Non-Executive Directors. Post final completion they will stand down from NRAM plc and they will receive no fees for this directorship. The Board of NRAM (No.1) Limited will comprise the current Board Members of NRAM plc.
Customers are not affected by this and do not need to take any action; their mortgages continue to be administered by UKAR staff and there are no changes to their terms and conditions.
The final part of the sale completion process, expected in the Summer of 2016, will see Cerberus change the name of NRAM plc and UKAR will change the name of NRAM (No.1) Limited to NRAM Limited. At this point, customers affected by this transaction will be contacted by the relevant company to explain the change in ownership of their mortgage or loan.
UK Asset Resolution Limited (UKAR)
UKAR was established on 1 October 2010 to facilitate the orderly management of the closed mortgage books of both Bradford & Bingley and NRAM to maximise value for taxpayers, while ensuring that both companies continue to treat customers fairly, deliver consistently high levels of service and support those customers facing financial difficulty. Further information about UKAR is available at www.ukar.co.uk.
Jonathan Glass / Pip Green
Tel: +44 20 7404 5959