Project Wing: For sale: one bank (code name: Blackbird)

So, want to buy a bank?

The documentation discovered by the FT disguises the name of the bank with the codename Blackbird.  However, the passage “On 9 October 2007, Blackbird announced that it had agreed additional facilities, which enabled it to borrow through the Bank of England on a secured basis against all of its assets. These arrangements were designed to allow Blackbird to continue to pursue the full range of its strategic options. Blackbird also announced that it had received a number of approaches regarding a variety of potential transactions and is continuing discussions with selected parties.” does tend to give away who the agents might be trying to sell.

There are three possible models of sale: (a) the whole company; (b) the mortgage business and deposits (includingTreasury funding) – the prime model; or (c) a bowdlerised bank less all the bad bits with only a chunk of the mortgage book and a chunk of the deposit book (the platform model) where what remained would be placed “into solvent run-off with its objectives to manage the orderly run-down of the balance sheet, repay creditors and, if appropriate, return any residual value to shareholders using the consideration paid to Blackbird for the assets, business and operating platform acquired by the purchaser.” 

As a borrower from Blackbird I don’t think I’ll be affected in the short term by any option as my loan is subject to various terms and conditions that will continue to my benefit following any transfer of the right to repayment elsewhere (or indeed the sale of the shares in the company). 

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About loveandgarbage

I watch the telly and read when not doing law stuff and plugging my decade and a half old unwatched Edinburgh fringe show.
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One Response to Project Wing: For sale: one bank (code name: Blackbird)

  1. Anonymous says:

    London opening ceremony
    I recall the Euro ’96 opening ceremony, which appeared to consist of a bunch of women in medieval costume prancing about while being chased by a guy in a rubber dragon suit.
    I think the aim of the thing was to present some sort of composite of English history and folklore. Sadly, it looked, well, rubbish.
    The dragon suit will, I fear, return to haunt the world four years from now.

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