HSBC sells Petroceltic oil loan at large loss

HSBC Holdings is discovering that the oil crash extends far beyond the deserts of the Gulf, the plains of west Texas, and the shale fields of North Dakota. Even Petroceltic, the small energy company in Dublin, can inflict pain.

The lender led a group of banks that extended up to $500m (€444m) to Petroceltic three years ago, helping the Irish oil-and-gas explorer develop its prized gas field in the southeast of Algeria.

With the company now facing a collapse in energy prices and locked in a feud with an ex-Deutsche Bank trader-turned-activist shareholder, HSBC has sold its loans at about 30% of face value, according to people in the know.