US billionaire investor Wilbur Ross picks up £280,000 from the ashes of NBNK
US billionaire investor Wilbur Ross has picked up £281,000 from the ashes of the failed banking investment vehicle NBNK.
In May the board of NBNK, made up of private equity firm WL Ross & Co's senior vice president Stephen Johnson, and Labour life peer and barrister Lord Brennan, voted in May to make the payment to WL Ross & Co for the "recovery of legal fees and other due diligence costs."
The vehicle's most recent accounts revealed a loss for the year of £271,000, from a loss of £182,000 the previous year.
Read more: Deutsche Bank and Santander fail US banking stress test
It put the increase down to one off legal costs, a legacy of the company's attempts to acquire branches from Lloyds Banking Group as part of deal called Project Verde.
NBNK also failed to buy collapsed lender Northern Rock in the aftermath of the financial crisis.
It was announced in April that NBNK would be shuttered after failing to acquire any European banking assets in its six year life time. At a shareholder general meeting on Tuesday a wind-up resolution was voted through.
In a statement following the announcement the company said:
Negotiations with potential targets have not produced an acquisition proposition capable of being recommended to shareholders for approval.
Trading in NBNK’s shares was suspended from last Tuesday morning, with the firm’s admission cancelled on Wednesday.
Read more: Lloyds Banking Group to cut 640 jobs and close 23 branches
WL Ross bought a 29.9 stake in NBNK 2013. Investment firm Crystal Amber controlled 28.24 per cent, while Investco Asset Management held 27.46 per cent. The remainder was owned by Bailie Gifford.
The business raised £50m in 2010 on London’s junior Aim market, led by former Lloyd’s of London chairman Peter Levene.