Reply #10: U.K. lender taps Virgin for rescue

[ozymandius]

LONDON (AP) -- Northern Rock PLC will proceed with accelerated takeover discussions with a consortium led by Virgin Group, the battered mortgage lender said Monday.

Virgin, which proposes to rebrand Northern Rock as part of Virgin Money business, says its consortium would repay £11 billion ($22.7 billion) of the £25 billion (50 billion) the Bank of England has loaned to Northern Rock on the completion of the transaction.

The remainder of the money would be paid "in due course," Northern Rock said in an announcement to the London Stock Exchange.

The Virgin Consortium also promised additional funding facilities to support the business.

Virgin's consortium includes W.L. Ross & Co, Toscafund Asset Management LLP and First Eastern Investment Group.

http://money.cnn.com/2007/11/26/news/international/northern_rock.ap/index.htm?postversion=2007112605