Plans to inject more money into Countrywide, which includes Abbotts estate agents in Norwich,and write off much of its debts have moved a step forward.
An independent committee of the board has reviewed the proposed scheme to restructure the company’s balance sheet and released a statement saying that it believes it would create a stable and sustainable capital structure.
Countrywide announced on February 17 that it was looking to obtain £75m of fresh equity capital with a reduction of debts.
Nationwide said it now expects the scheme to be filed with the relevant court in March and be completed during the second quarter.The complicated arrangement involves Castle Holdco 4, a holding company that came into being when US equity firm Apollo first acquired Countrywide, and a vehicle called Oaktree.
The suggestion is that Countrywide needs money to snap up estate agencies, chartered surveyor and financial services firms and conveyancers, which are feeling the pinch in the downturn, in order to maintain and grow market share.
Apollo originally backed Countrywide to the tune of £740m.
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'Let them try|||||||||'
