New Star taken over by banks

The asset manager's banks will take over 75% of New Star's enlarged ordinary share capital, acquiring £94m of £100m new high-dividend convertible preference shares. New Star's proposed restructuring will result in £240m of its £260m gross debt being converted into equity. It says the transition to an unlisted company, due to be completed early in next year, will allow the firm to "concentrate on its investment performance". New Star - which had £13.9bn in assets under management at 30 November - says as the credit crisis deepened during September, a number of clients raised concerns a...