Pearl in talks to restructure debts

Last week, rumours the FSA wanted Pearl to reduce its £3bn debt began circulating, and today owner Hugh Osmond is thought to be considering ways of restructuring the business. Negotiations are said to be underway with Lloyds Banking Group, Dresdner Kleinwort and Royal Bank of Scotland over a possible debt-for-equity swap. Osmond may also be preparing to inject £350m of his personal fortune into the insurer, which bought Resolution Life for £5bn last year. Much of Pearl's debt - around £2.2bn - is held in Impala, the bid vehicle used to acquire Resolution, with another £800m held elsew...