Centerbridge Sues to Terminate Oaktree Bank Deal on Mafia Loans

Centerbridge Partners LP is seeking to terminate a deal to buy an Italian lender from Oaktree Capital Management LP signed shortly before the bank plunged into a crisis over allegations it lent to companies associated with the mafia.

Red UK Holdco Ltd., an entity affiliated with Centerbridge, asked a London judge to declare it’s entitled to terminate the agreement to buy Oaktree’s Banca Progetto SpA “with immediate effect,” according to court documents dated March 5. In the filing, Centerbridge said the conditions for the deal weren’t met because the bank failed to address deficiencies related to anti-money laundering controls before ...