MP questions Antler deal
AN influential Conservative MP is raising questions about Lloyds Banking Group’s dealings with Bury-based luggage firm Antler.
Lloyds Development Capital, the bank’s private equity arm, last week bought the business out of administration in a £15m deal.
Lloyds was also the bank’s main lender, and is understood to have driven the sale process – which because of a pension fund deficit had to be a pre-pack administration.
Michael Fallon, who is a lleading candidate to become chair of the powerful Treasury Select Committee, told The Daily Telegraph he is concerned about potential conflicts of interest and about the amount of debt which state-owned Lloyds is converting into equity.
Mr Fallon told the newspaper: “This is a state-owned bank and we are concerned about the amount of debt it is converting into equity.”
Mr Fallon said he plans to raise the matter at the select committee when the new parliamentary session begins.
Around 300 jobs were safeguarded at Antler by the sale, which was handled by KPMG.
Antler, had breached its banking covenants after carrying high levels of debt following a £44m secondary buyout by Barclays Private Equity in 2004.
A spokesman for LBG denied any conflict of interest:. “The decision to appoint an administrator is for the relevant company alone. The administrator, on behalf of the company, is then responsible for ensuring the most attractive and sustainable bid is obtained during the sale process.
“This demarcation is clearly understood and was closely observed by Lloyds Banking Group and LDC. There is simply no conflict of interest and we strongly refute any suggestion to the contrary,” he added.
