LONDON (Reuters) Wed Aug 26, 2009 12:37am BST....... in full
- Lloyds (LLOY.L) may have to write off as much as 500 million pounds on loans it made to pubs group Admiral Taverns, the Financial Times reported on Wednesday.
Citing accounts filed, the FT said, the debt-laden pubs group was in talks with its lenders over a possible debt-for-equity swap after it breached banking covenants.
"Discussions have taken place between the interested parties regarding the preferred options of a debt-for-equity swap by the principal banker or the introduction of significant additional equity by new equity investors," the FT said.
The paper added that the terms of the deal were still being negotiated, but a debt-for-equity swap looked the most likely option, with Lloyds possible agreeing to write off as much as 500 million pounds of debt.
Lloyds and Admiral Taverns were not immediately available for comment.
Fluff View........
We can see the high levels of DEBT are creeping back into the news and along with the US, Lloyds can also send a drink to the bear party!!
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