Citigroup close to sale of troubled debt: report By John Letzing, MarketWatch Last update: 7:10 p.m. EDT April 8, 2008Print E-mail RSS Disable Live Quotes SAN FRANCISCO (MarketWatch) -- Citigroup Inc. is nearing a deal to sell some $12 billion in troubled debt to private equity firms for an average price of slightly less than 90 cents on the dollar, according to a report published Tuesday. The online edition of The Wall Street Journal reported that Citigroup originally issued the leveraged loans and bonds in hopes of passing them on to investors, only to see demand dry up with the advent of the ongoing credit crunch. Citigroup is now on the verge of selling the unwanted loans and bonds to buyout firms including Apollo Management, TPG and Blackstone Group, the report said, citing people familiar with the matter. The report said the deal would be "the largest single sale of leveraged loans in recent memory." It comes amid hope that the credit market has bottomed out and is poised for a recovery, the report said.