Citi Sells Debt Backed by Perelman NYC Properties at Discount

Citigroup Inc. has sold loans secured by three of Ron Perelman’s Manhattan properties at a roughly 40% discount, according to people familiar with the matter.

The loans, which were in default with a balance of $193 million, sold for $115 million, the people said, asking not to be named because the matter is private.

Perelman was once one of the world’s richest people with a fortune worth $19 billion. But in recent years his empire has faced daunting financial challenges, including at his cosmetics giant Revlon Inc.

The debt sold by Citi is backed by three adjacent properties ...