Hey, You—Keep Your Hands Off My Loan

What do money managers Highland Capital Management, Fortress Investment Group, and Cerberus Capital Management have in common? All three are on a list that bars them from buying any part of a $155 million loan to Quadriga Art, a company that helps charities raise money—even though the loan trades on U.S. markets.

RBS Holding, which owns Quadriga Art, last year banned those three companies and seven others from investing in the loan, according to two people with knowledge of the matter who asked not to be named because the decision was private. RBS deemed the companies to be too demanding in debt restructurings that take place when a borrower runs into financial trouble, the people say. Executives at RBS, which has no connection to the Royal Bank of Scotland, took a potential restructuring into consideration as Quadriga’s business faltered.