Mapeley, the offshore company that owns the Inland Revenue’s property portfolio, has warned shareholders it could go bust unless they vote in favour of a rescue convertible bond issue backed by Fortress, the American investment group.

In a circular sent to investors, Mapeley cautions that it does not have sufficient working capital to survive the next 12 months.

It also warns it may have insufficient cash to pay back a £60m corporate facility taken out with Deutsche Bank unless the bond issue gets the Green light.

The facility is due for repayment in April.

'If the transaction does not proceed...Mapeley Group may become insolvent or unable to continue trading,' the document says.

Sunday Times