LandesBank Berlin, part of a 60-strong group of lenders negotiating a restructuring of the retirement homebuilder McCarthy & Stone is attempting to block a pay package that could see senior managers earn millions of pounds in bonuses.

It has written to Howard Phillips, McCarthy & Stone’s chief executive, and Howard Ball, its chief financial officer, to express its 'strong irritation' at the proposals, which is contingent upon the company recovering much of its value following its capital restructuring.

The letter from LandesBank Berlin, sent on March 6, said: 'Although we learned that you were agreed a bonus on the successful completion of the restructuring by the board back in July 2008, we are aware that the circumstances that have transpired are very different [now],' according to The Sunday Telegraph

It also warned that LandesBank Berlin would 'be doing everything in our power to prevent such payments since we regard them as being unjustified and/or unusual in such circumstances'.

Sunday Telegraph