MWB lines up administrator

 
Kasmira Jefford
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MWB, the hotel operator, is said to have lined up accountants firm Deloitte as potential administrators as it struggles to deal with a financing crisis.

The owner of the Malmaison hotel chain and Hotel du Vin is locked in battle with MWB Business Exchange, its 75 per cent owned subsidiary, over the repayments of millions of pounds worth of loans.

The dispute centred on an £8m loan owed to Business Exchange by MWB and £4.8m of “contractual payments” that Business Exchange was due to make to MWB in six monthly instalments from September 2012.

MWB two weeks ago ordered that its shares and loan stock be suspended from trading on the London stock exchange after Business exchange said it planned to offset its £4.8m liability against the £8m loan.

It is now reported that the group has lined up Deloitte to find a solution for the group.