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TalkTalk stakeholders to discuss £200 million-plus cash injection

Company and lenders to hold funding talks tomorrow.

TalkTalk will meet bondholders this week to discuss plans for a £200 million-plus capital injection by its owners, according to a Sky News report. 

It is understood that the telecoms group and a group of key lenders and their advisers, will hold talks tomorrow about plans for the founder Sir Charles Dunstone and other shareholders to put in the new funding.

The discussions come after months of attempts by the Carphone Warehouse co-founder to fix TalkTalk's balance sheet.

If it progresses, the £200 million injection from Dunstone, Toscafund and Ares Management would come with an amend-and-extend agreement with the group's lending banks.

Separate discussions with Macquarie, the Australian bank, about a larger investment into TalkTalk's wholesale network business, PlatformX, are also continuing.

James Smith, TalkTalk's chief financial officer, told debt investors during a results call this week: "We anticipate agreement on new capital investment into the business in the near future, and discussions to achieve that are ongoing.

"Engagement continues with a potential new investor, together with potential new lenders.

"At the same time, the group's existing shareholders have confirmed their intent to provide new funding of over £200 million into the group to support working capital and operational costs.

"Those shareholders and the company are in dialogue with existing group lenders, or their advisers, regarding the optimal route to put that funding into the business."

 

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