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Morning Business News, Tuesday 19 January: RBS, Lloyds Banking Group, Gala Coral, International Power, Tullow Oil and British Airways. RBS (LON:RBS) and Lloyds Banking Group (LON:LLOY) are said to be considering restructuring the debt of embattled gambling operator Gala Coral Group.
It is believed long running talks over refinancing between Gala Coral, Lloyds Banking Group and RBS are drawing close to a resolution.
The Times understands that Gala’s senior lenders — led by RBS, Lloyds Banking Group and Alcentra — are in advanced negotiations with the holders of its £540 million of mezzanine debt in a process that could lead to the debt being converted into equity.
To push through the deal, the mezzanine-holders have been asked to make a cash payment of up to £150 million to ensure Gala Coral stays afloat.
International Power
The Financial Services Authority (FSA) was examining dramatic movements in International Power’s (LON:IPR) share price last night after the FTSE 100 energy company abruptly broke off talks with GDF Suez about a possible tie-up.
More than £650m was wiped off the value of International Power after the two companies were forced to issue statements confirming speculation that they had been in talks about a possible partnership deal, but that those discussions had now ended, the Times reports.
Tullow Oil
Aidan Heavey, founder and chief executive of Tullow Oil (LON:TLW), the UK’s fourth-biggest oil company, says his decision this weekend to pre-empt the $1.35bn (£826m) sale of Heritage Oil’s Uganda assets to Eni, the Italian energy group, was all part of a normal day’s business.
“It’s a normal day ... It’s easy finances,” he says. “Is it a strategic change? No it’s not. It is gaining a better position in a very important asset for Tullow,” the FT reports.
British Airways
Cabin crew at British Airways are to vote on a fresh ballot for industrial action next week in a move that could leave passengers facing strike action over Easter.
The airline narrowly avoided disruption over the Christmas holidays after legal action prevented planned strikes by flight attendants, but trade union bosses have now called another ballot that could see walkouts during the first week of April, the Independent reports.
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