Barclay brothers avoid bankruptcy after deal with HSBC over £143m debt
Summary
The Barclay brothers avoided bankruptcy by reaching a deal with HSBC over a debt of more than £140 million. HSBC stopped legal action after the brothers agreed to a repayment plan following their involvement with overdue loans linked to their business activities.Key Facts
- Aidan and Howard Barclay owed HSBC £143.5 million related to loans they personally guaranteed.
- HSBC started legal action after the collapse of a company connected to the Barclay family’s courier service, Yodel.
- The Barclay brothers agreed to a debt repayment plan called an individual voluntary arrangement (IVA).
- The IVA requires the Barclays to pay HSBC’s legal costs, but details of the agreement were not made public.
- If HSBC had won bankruptcy proceedings, they and other creditors could have taken and sold off the Barclays’ remaining assets.
- Bankruptcy would have prevented the Barclays from holding company director roles for at least a year.
- The Barclay family lost control of the Telegraph newspapers in 2023 due to earlier debts totaling £1.16 billion owed to Lloyds Bank.
- The Barclay family has sold other assets recently, including the Ritz hotel and the Very Group shopping business.
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