** Shares of investment bank B. Riley Financial RILY.O rise as much as 6.5%; last up 4.2% at $4.95
** Distressed debt giant Oaktree Capital Management is in talks to replace a group led by Japan's Nomura Holdings 8604.T as the main lender to RILY, Bloomberg reports, citing people familiar with the matter
** RILY is looking for successors to the Nomura-led syndicate as part of a turnaround plan that may see the bank spin off its securities business, the report says
** Bank has been in a tailspin since last year when it suspended its dividend and revealed huge losses tied to Franchise Group bankruptcy, a retailer backed by RILY
** RILY and its co-CEO Bryant Riley have also received subpoenas from the U.S. SEC over the bank's dealings with Franchise's former CEO Brian Kahn
** Bank has sought to fortify its balance sheet and stem the stock rout through divestitures of non-core units
** RILY stock slumped 78.1% in 2024
(Reporting by Arasu Kannagi Basil in Bengaluru)
((ArasuKannagi.Basil@thomsonreuters.com))
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