Northern Rock has announced it wishes to make "accelerated" discussions on a possible deal with Virgin Money.
The beleaguered lender released a statement to the stock exchange this morning outlining its plan to take forward the Virgin Consortium proposals. Subject to regulatory approval, the Virgin plan suggests £11bn will be repaid to the Bank of England at completion of the transaction, with “a clear path towards” the full loan repayment. The Virgin Consortium proposes £1.3bn of new cash, with the £250m Virgin Money business injected into Northern Rock for an issue of new ordinary shares in each case. Of the cash amount, half will be provided by the Virgin Consortium and half raised through...
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