Troubled High Street lender Metro Bank planning to sell £500m of debt to a major US hedge fund
Troubled high street lender Metro Bank is planning to sell £500m of debt to a major US hedge fund.
The deal with Cerberus Capital Management, which could be announced alongside half-year results on Wednesday according to Sky News, would boost the bank’s capital position after a turbulent few months.
In recent years Metro has bought more than £1 billion of assets from Cerberus, including a £520m buy-to-let portfolio in February 2018.
Under fire: The bank’s colourful chairman Vernon Hill has been criticised for handing £21m of company money to his wife’s architecture firm
Since March last year the stock has tumbled 88 per cent amidst concerns over governance and a major accounting error over the riskiness of some of its property loans.
The bank’s colourful chairman Vernon Hill was also criticised for handing £21m of company money to his wife’s architecture firm InterArch. Investors returned the bank to a firmer footing last month pumping in another £375m.
The bank is now worth £815m and shares on Friday closed at 472.2p.
Cerberus did not respond to an approach for comment last night. Metro Bank declined to comment.