TalkTalk’s founder Sir Charles Dunstone has pledged a £400 million package to win support from lenders in a bid to refinance the company, according to a Sky News report.
The company is understood to have this week proposed that a number of assets including Virtual1 would be handed over as part of a deal with its bondholders and bank lenders.Sources said that TalkTalk was also proposing to add the broadband customer base it acquired from Shell Energy within the package.
In total, they said, the assets offered would total in the region of £200 million, adding to a proposed capital injection of just over £200 million from Dunstone and the company's other shareholders.They hope to win approval to extend the company's repayment obligations until 2027.
Dunstone and his management team have also committed that they would remain in place until their turnaround plan has been delivered in three years’ time.
The talks come as TalkTalk seeks to reorganise borrowings which total in the region of £1 billion.
If it progresses, the £200 million-plus injection from Sir Charles, Toscafund and Ares Management, and the various asset pledges, would be accompanied by an amend-and-extend agreement with the group's lenders.
Separate discussions with Macquarie about a larger investment into TalkTalk's wholesale network business, PlatformX, are also continuing.
TalkTalk declined to comment.