A member of the media-mogul Barclay family that previously controlled the Daily Telegraph said any potential buyers may consider the newspaper to be a “distressed” asset.
(Bloomberg) — A member of the media-mogul Barclay family that previously controlled the Daily Telegraph said any potential buyers may consider the newspaper to be a “distressed” asset.
The Sunday and Daily Telegraph newspaper is set to be sold after Lloyds Banking Group Plc took control of the holding company and stripped the Barclay family of their directorships in May. Giving evidence at the London divorce case involving his uncle Frederick, Howard Barclay said that the newspaper was not an easy asset to sell.
“For most buyers, they now look at this as a distressed asset,” Barclay said Friday. “Some damage to the value has already been done.”
Lloyds pushed B.UK, the Bermuda-based holding company for the Telegraph Media Group, into receivership in June but Barclay said the family was “unlikely” to receive funds from the sale itself. The bank’s move to take control of some of the nation’s best known titles shocked the media and political world in Britain. It has thrown up questions about the future ownership of the Telegraph newspapers, which have stridently backed both Brexit and the ruling Conservative Party, ahead of a general election expected next year.
In May, the receivers AlixPartners said that the move didn’t impact the newspapers themselves, saying the receivership “is in no way related to the financial health or performance of the Telegraph or Spectator businesses. Neither the Telegraph Media Group nor the Spectator are entering administration.”
A spokesperson for LLoyds couldn’t immediately be reached. In May, a spokesperson described the decision to appoint receivers as “an act of last resort” and said “the bank remains willing to continue discussions to find a suitable solution.”
The questioning took place at a London court which is waiting to see if promised funds to pay for Frederick’s divorce case will show up. The tycoon, who owes £100 million ($128 million) to his former wife, is seeking to settle the case.
“Sir Frederick is stuck high and dry,” Judge Jonathan Cohen said.
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