Banks grab distressed UK assets

Six European banks – Abbey, Bayerische Landesbank, Bank of Scotland, HVB, Lloyds TSB and The RoyalBank of Scotland – have formed an acquisition vehicle, CGE Power, whichaims to consolidate the UK independent power generation market by acquiring andoperating a portfolio of distressed power assets.

According to a source close to the formation of CGE, the company aims to acquirearound half of the estimated £5.5 billion, 20GW distressed asset base inthe UK.

The London-registered company has appoin