Telegraph Media Group faces sale over £1bn unpaid debt
The Telegraph Media Group, which owns The Daily and Sunday Telegraph newspapers and The Spectator magazine, is facing potential sale due to unpaid debt, according to a recent statement. Bank of Scotland, the lender, explained that it had no choice but to appoint a receiver over B.UK. Limited, the Bermuda-based holding company for the Telegraph Media Group, as the debt remained in default with no indication of repayment. The wealthy Barclay family controls the holding company.
The bank described the appointment of receivers as an “act of last resort” after attempts to find a consensual solution and repayment for the borrowing, reportedly amounting to £1 billion. Despite the lack of agreement, the bank stated that it “remains willing to continue discussions to find a suitable solution.”
AlixPartners, a financial advisory firm, has been appointed as the receiver over B.UK. Limited. The firm clarified that the day-to-day operations of the publications would “continue as normal” and that the receivership is unrelated to the “financial health or performance” of the businesses.
The Telegraph Media Group was acquired by twin brothers Sir Frederick and Sir David Barclay in 2004 for £665 million. AlixPartners revealed that Howard and Aidan Barclay, sons of the late Sir David Barclay, have been removed as directors of the business.
The Barclay family stated that discussions with Lloyds Banking Group, owner of the Bank of Scotland, are still “ongoing.” A spokesperson for the family expressed hope that an agreement satisfying all parties would be reached, reported Malay Mail.
Industry experts estimate the Telegraph Media Group’s value to be between £500 million and £600 million.
