Founder Sir Charles Dunstone prepares to bail out TalkTalk

TalkTalk founder Sir Charles Dunstone is preparing to inject fresh funding into the debt-laden broadband provider, as looming repayment deadlines stoke fears over its future. Sir Charles and TalkTalk’s other main shareholders have offered to inject £150m into the company to stave off a potential debt crisis, sources said. The company’s lenders are pressing Sir Charles and TalkTalk’s other main shareholders, led by private equity house Toscafund, to stump up cash to unlock a rescue deal. Banks behind TalkTalk’s £330m revolving credit facility – effectively a corporate overdraft – are understood to be seeking to reduce their exposure to as little as £150m when it comes due for refinancing in November. That would require Sir Charles and his fellow shareholders to provide £180m in new equity. Negotiations between the two sides are ongoing. Last year some of TalkTalk’s banks chose to protect themselves from a potential financial crunch by selling debt on to less traditional lenders at a 25pc discount, City sources said. TalkTalk, which has 3.8 million broadband customers and is Britain’s fourth-largest provider, has been labouring under heavy debts for many years. Sir Charles and Toscafund delisted the business from the stock exchange three years ago by loading...

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