FRANKFURT - German lender HSH Nordbank could split off a “bad bank” for non-performing shipping loans as part of a plan to create a sustainable business model, according to a person familiar with the matter. Germany’s Manager Magazin reported earlier on Thursday that the city of Hamburg was willing to inject billions of euros in fresh equity to stabilise the bank, which is 85 percent owned by the regional states of Hamburg and Schleswig-Holstein. HSH’s bad shipping assets would be wound down under the plan, allowing a fresh start for the remaining bank with a focus on corporate lending, including new loans to the shipping industry, the magazine said. At the same time, an existing guarantee by the regional states of the lender’s losses linked to toxic assets would be scrapped, it added. HSH regards the fees it pays for the guarantee as too high to allow for a sustainable business model. HSH and its owners were not immediately available to comment.