HMV set to reveal deal with banks
SHARES of HMV, the embattled music retail chain, shot up yesterday on speculation that it was on the verge of a restructuring deal with its creditors.
Led by Lloyds Banking Group and Royal Bank of Scotland, the state-owned lenders, are expected to have agreed to provide the retailer with a two-year refinancing of between £210m and £230m.
Under the agreement expected to be unveiled this morning, the banks are to be granted warrants in the firm worth up to five per cent of the company’s shares, handing them equity in the company, according to Sky News. Shares of the company closed up 49.4 per cent at 12.25p per unit.