Banknote printer De La Rue set for review of finances
The Bank of England’s banknote printer, De La Rue, is set for talks with its lenders after calling in advisers to review the business.
De La Rue’s banking syndicate, led by HSBC, has appointed FTI Consulting to negotiate the future of its borrowing arrangements with lenders, according to Sky News
Last November, the firm said there was “material uncertainty” over its future unless it could address its growing net debt.
The firm’s new management is to unveil a plan to turn things around next month.
The firm lost its contract to print British passports to a Franco-Dutch rival from late this year.
Its £275m credit facility is due to expire towards the end of 2021.
Other lenders include Barclays, Bank of Ireland, Lloyds Banking Group, Royal Bank of Scotland and Santander UK.
The Independent Business Review is expected to be concluded within two months.
De La Rue’s share price has tumbled by 68 per cent over the last year and ended Friday at 134.8p each.
A spokesman for the firm said: “As we have indicated previously, we will announce a turnaround plan during [the first quarter of 2020].
“Naturally, we would expect to have discussions with our lending banks and their advisors during this process as we move forward with our plans for the company.”