(Bloomberg) -- Auctions for the Telegraph newspaper and Spectator magazine have been paused as Lloyds Banking Group Plc reviews an offer that would allow the British banking giant to recoup all of its debt from the Barclay family.
Chief Executive Officer Nick Hugh is not involved in those discussions, but provided the update to staffers in a memo seen by Bloomberg News. Directors appointed by receivers running the auctions paused the sale process until after December 4, the date of a postponed court hearing between Lloyds and the Barclay family, according to a separate statement Tuesday.
Lloyds agreed to adjourn a hearing aimed at liquidating a Barclay family holding company after the family made an offer to repay its entire £1.15 billion ($1.44 billion) debt to the bank. Lloyds seized the media titles in June, removed the Barclays from directorships, and put them up for sale in an attempt to claw back the money.
A representative for Lloyds declined to comment.
Goldman Sachs Group Inc. was appointed by the receivers to run the sales process for the Telegraph Media Group Ltd. and the Spectator (1828) Ltd.
The Barclay family’s latest offer is funded via a loan from RedBird IMI, a media investment vehicle backed by the United Arab Emirates’ Sheikh Mansour Bin Zayed Al Nahyan. RedBird IMI said yesterday it intends to convert that loan into equity ownership.
--With assistance from Katherine Griffiths.
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