The former homeowners of The Daily Telegraph have tabled a proposal to restructure its debt to Britain’s largest excessive avenue lender in a last-ditch try to regain management of the right-wing newspaper.
Sky News has learnt that the Barclay household submitted a proposal to Lloyds Banking Group on Wednesday that might have entailed the financial institution writing off a portion of the roughly £1bn it’s owed.
Further particulars of the proposal – which adopted one final week and was the newest in a collection made by the Barclays in current months – had been unclear, though sources mentioned it had been rejected by Bank of Scotland, the Lloyds subsidiary which is owed the cash.
Carlyle, the non-public fairness agency which already holds a portion of debt connected to Barclay-backed firms together with the net purchasing enterprise Very Group, is known to be concerned within the talks with the household.
The Barclay household is being suggested by Houlihan Lokey, the funding financial institution, on the scenario.
A household spokesperson mentioned talks with Lloyds “remain ongoing”.
“We hope to come to an agreement that will satisfy all parties,” they added.
The prospects of a deal being reached by the 2 sides seem distant, nevertheless, given the protracted nature of the talks and the truth that Lloyds had positioned the newspapers’ oblique holding firm into receivership earlier this week.
Sky News revealed on Tuesday that Lloyds plans to quickly launch a sale course of for the Telegraph newspapers and Spectator journal, with a bidding frenzy anticipated to ensue.
Lloyds executives count on the media property to command a price ticket of about £600m, which means it will nonetheless be owed within the area of £400m by the Barclay household even after the proceeds of the Telegraph sale are used to repay a part of the mortgage.
A gaggle of banks together with the Wall Street behemoths Goldman Sachs and JP Morgan are vying for the prized mandate to promote the newspapers.
AlixPartners is appearing as receiver to B.UK Ltd, a holding firm inside the Penultimate Investment Holdings Limited (PIHL) Group which not directly owns the Telegraph Media Group and The Spectator (1828) Limited.
Sky News revealed on Tuesday night time that Lloyds is being suggested by Lazard on its choices for the property.
The impending sale course of can be among the many most hotly contested media auctions in Britain for years and is anticipated to attract curiosity from billionaires, Tory donors and different media teams.
On Wednesday, Lloyds eliminated administrators appointed by the Barclay household, together with Aidan Barclay, the chairman of the newspaper group.
Aidan Barclay is the nephew of Sir Frederick Barclay, the octogenarian who together with late brother Sir David engineered the takeover of the Telegraph in 2004.
Sir Frederick is at present embroiled in a £100m court docket battle over his divorce settlement.
The Barclays beforehand owned the Ritz lodge in London, and nonetheless personal the supply service Yodel.
Lloyds and Carlyle declined to remark.
Content Source: information.sky.com