Telegraph Media Group (TMG), the parent company of the Daily and Sunday Telegraph, is facing the threat of being put into administration by lenders Lloyds Banking Group after a breakdown in talks over loans.
TMG is controlled by the Barclay family through their holding company Press Acquisitions, and Lloyds has threatened to call in restructuring advisory groups and appoint insolvency practitioners "within days" if a new deal is not reached over about £65m in loans.
However, TMG is in "good financial shape" and the loans in question are related to the family's overarching ownership structure of their media assets, according to a spokesperson for the Barclay brothers.
There is no liability for any holding company liabilities on the businesses within TMG's portfolio, which are run by independent management teams and are well capitalized with minimal debt and strong liquidity.
The newspapers continue to trade strongly and are unaffected by issues in the holding company structure above them.
However, TMG is in "good financial shape" and the loans in question are related to the family's overarching ownership structure of their media assets, according to a spokesperson for the Barclay brothers.
There is no liability for any holding company liabilities on the businesses within TMG's portfolio, which are run by independent management teams and are well capitalized with minimal debt and strong liquidity.
The newspapers continue to trade strongly and are unaffected by issues in the holding company structure above them.