Embattled rent-to-own retailer BrightHouse is on the verge of securing a £220 million restructuring deal which would see Vision Capital’s stake reduced to just three per cent.
According to Sky News, a consortium of bondholders including Alteri Investors, HSBC and Highbridge capital management, could gain control of the retailer by the end of the week.
Under the proposed deal, the group of bondholders will take on £220 million of the retailer’s debt in exchange for equity.
The remainder of the debt is due to mature in May next year.
If the deal is agreed as expected, it will end discussions between advisers about a third-party takeover of the business, which has been dogged by controversy and a raft of fines.
The Financial Conduct Authority (FCA) will have to approve the deal.
BrightHouse was recently ordered to pay £250,000 by the FCA for failing to act as a “responsible lender”, alongside a further £15 million bill in compensation demanded by the City watchdog.
These fines are a result of the retailer’s failure to properly screen tens of thousands of customers over their ability to repay their loans.
Amid the recent Paradise Papers scandal it was revealed that the Queen’s private estate, the Duchy of Lancaster, had indirectly invested in BrightHouse.