The estimated €80bn ($117bn) backlog of hung European leveraged loans stands little chance of being cleared as long as underwriting banks refuse to sell the buyout debt at a discount, according to practitioners.

Frustration is building in the UK and European bank underwriting community that some houses are unwilling to replicate a move by US banks to incur a loss and sell hung loans at a discount to par value in order to shift the backlog and rid debt from their balance sheets.