The founder of broadband provider TalkTalk has agreed a £400 million deal with its lenders to avoid the prospect of a debt default.
Sir Charles Dunstone and other shareholders are to inject £65 million into the business immediately, to be followed by a further £170 million. Its Virtual1 subsidiary and Ovo and Shell internet brands will also be brought into the company.
Lenders and bondholders have now agreed in principle to extend existing debt deadlines in November 2024 and February 2025 to September 2027.
“The proposed transaction will leave the Company well-funded to deliver the respective strategic plans of PlatformX Communications (PXC) and TalkTalk, continuing to capitalise on their strong positions in the market,” TalkTalk said in a statement.
The company has previously held talks with Virgin Media and Sky over the sale of its consumer and business divisions.
A number of management changes will take place from 1 September. As previously announced, Dame Tristia Harrison will become a non-executive director of the Group. James Smith, current Group CFO, will become Group CEO and will also become CEO of PXC, with Tom O’Hagan stepping up to a new role of executive chairman of PXC to focus on strategy and clients. Susie Buckridge remains CEO of TalkTalk, the Group’s consumer business. Sir Charles Dunstone will continue in his role as Group Chairman.
