Morning:
14°c
Lenders deal a new blow to Foxtons
28.08.08
The private-equity buyout of London estate agent Foxtons plunged deeper into crisis today after lenders seized control of its financial restructuring.
Foxtons was bought by BC Partners for £360 million just before the property market crashed last year.
Foxtons is now thought to be close to breaching its banking covenants and BC Partners has lined up NM Rothschild to advise.
But Bank of America and Mizuho, which have failed to syndicate the vast majority of their £270 million of debt in Foxtons, have now asked Close Brothers to advise them on how to preserve as much of their investment as possible.
