£650m of new life (From Daily Echo)

£650m of new life

9:39am Tuesday 9th March 2010 in

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ONE of the largest debt for equity swaps in UK corporate history is aiming to breathe £650m of new life in to the firm behind six Hampshire hotels, including Southampton’s De Vere Grand Harbour, above.

Lloyds Bank, which is 43 per cent owned by the taxpayer, is swapping £650m owed by the De Vere and Hotel du Vin parent the Alternative Hotel Group (AHG) for shares in the business.

It slashes AHG’s debt pile to just over the £1 billion mark and gives management time to rebuild the business, with interest bills reduced by a reported £60m.

As well as the landmark Grand Harbour, De Vere owns three of its Venue hotel and conference resorts in Hampshire, including New Place at Shedfield, below, and two further sites in Hook. AHG also owns the Winchester based boutique Hotel du Vin brand and the Village Hotels chain, which has a location in Farnborough.

The company was set up in 2005 through the £325m buy out of Initial Style Conferences, followed by the £1.1 billion takeover of the De Vere Group, which included the Village Hotels & Leisure chain.