NEW YORK -- The founders and former managers of two highly successful Citibank International PLC finance companies in London have founded a new firm intending to pick up -- and move forward -- from where they left off.
Stephen Patridge-Hicks and Nicholas Sossidis, founders of the asset-backed programs known as Alpha and Beta Finance Corp., were forced to resign from Citibank in mid-September over a "policy disagreement."
Now the two men have formed a company, called Gordian Knot Ltd., and currently are seeking partners. The firm's purpose will be to design, build, and manage new finance companies, taking the concepts they developed a Citibank and moving them to the next level, the partners said Friday.
Placed Under Injunction
The pair were initially suspended from their duties at Citibank International, Citibank N.A.'s main U.K. unit, on Sept. 7 and were placed under an injunction prohibiting them from discussing the Citibank programs. The dispute was subsequently settled and the two were allowed to resign.
Mr. Partridge-Hicks and Mr. Sossidis said that the companies issue commercial paper and medium-term notes backed by debt securities.
Called |Real Companies'
Alpha and Beta are"real companies with capital" that had to earn a return-on-equity for shareholders, said Mr. Patridge-Hicks.
They said the programs, which also have the ability to enter into derivatives contracts such as interest-rate swaps and currency swaps, are the only such program that exist. Mr. Patridge-Hicks and Mr. Sossidis expect to change that through their new venture.
For partners, the two men are seeking firms that can lend their name, as well as their money, and have the same management philosophy, said Mr. Patridge-Hicks.
