Labour Party saved from bankruptcy after rescheduling loans

Discussion in 'Current Affairs, News and Analysis' started by Blogg, Aug 13, 2008.

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  1. Pity. Was never going to be allowed to go under but all the same we live in hope.


    "The Labour Party has been saved from bankruptcy after wealthy lenders agreed to a delay in the repayment of their loans

    The loans, which total more than £15m, were given to the party in the run-up to the 2005 election, and were due to be repaid by next year. They threatened to ruin the party, which last month disclosed that it finished 2007 in £18.9m of debt.

    Leading party figures, including Gordon Brown, the Prime Minister, had been in danger of being made personally liable in the event of a complete collapse of the party's finances.

    However after successfully negotiating with lenders, party officials are set to announce rescheduled plans for the repayment of the loans, giving them some breathing space in which to attempt to attract more donors in an autumn fundraising campaign.

    Several of the wealthy lenders, some of whom were caught up in the "cash for honours" investigation, had been pleaded with by party figures desperate to transform the loans into donations. Two of them - Lord Sainsbury and Sir Gulam Noon - agreed, writing off loans of £2m and £250,000 respectively.

    Seven more, who are between them owed about £12m by the party, have agreed to defer the repayments to 2015.

    They include the property tycoon Sir David Garrard, who is owed £2.3 million; Richard Caring, the owner of The Ivy restaurant, £2m; Rod Aldridge of Capita, £1m; Chai Patel, one-time chief executive of the Priory, £1m; and the stockbrokers Barry Townsley, £1m and Derek Tullett, £400,000.

    However the property magnate Andrew Rosenfeld, who lent £1 million, and Gordon Crawford, who made his fortune from software and who lent £500,000, both rejected overtures from party officials and told Labour that they want their money back next year, as planned.

    A Labour spokesperson told The Times: "We are grateful to all our lenders for their continuing support as we address the financial challenges the party faces. Of course we keep our finances under ongoing review and work to ensure the party's finances remain on a stable long-term footing, but are unable to comment further at this stage."

    Labour is suffering from a desertion of key backers, while wealthy donors are flocking back to the Conservatives. Electoral Commission figures show that Labour received only £3.1m between January and March this year, with most of that coming from trade unions."


    http://www.telegraph.co.uk/news/newstopics/politics/labour/2550270/Labour-Party-saved-from-bankruptcy-after-rescheduling-loans.html
     
  2. At least 2 of the lenders are sticking to their guns and want the money back on time. Wonder if the Labour Party will be getting one of those debt management companies in to help them that seem to now be everywhere?

    Will they ask Northern Rock for a bridging loan do you think, after all one good turn and all that
     
  3. Maybe I should try that - see if my creditors will put my loans on hold 'til 2015 with no interest. Anybody want to give me odds on being successful?
     
  4. I still think we should have a fund raiser and buy their debt, it got to worth about as much a bunch of US house loans in the futures market.

    On a serious note I do they should forced to put their house in order, currently government policy is being made by those contributing to the survival of the party.

    YM