Chris Flowers, the veteran dealmaker, has edged closer to a takeover of Northern Rock after securing £15bn of funding. The Daily Telegraph
His backers, including JP Morgan, Credit Suisse and Wachovia, are understood to have committed the funding to cover Northern Rock’s obligations.
The mortgage lender has already drawn down £8bn from the Bank of England’s emergency lending facility. An estimated £13bn of debt obligations are understood to come up for renewal in the next four months on a total funding liability that could be as much as £30bn.
Flowers, through his private equity group JC Flowers, plans to take over Northern Rock to run the business, unlike a rival bid consortium led by Cerberus, which wants to break up the assets.