Northern Rock, the troubled UK mortgage lender, could still owe the Bank of England billions of pounds in three years’ time, according to a confidential, 36-page sales memo circulated to would-be buyers of the stricken lender. The memorandum, called Project Wing and obtained by FT Alphaville, is now the subject of a court injunction after Northern Rock sought to prevent its publication. The High Court granted a limited injunction preventing further reporting of material but rejected a more sweeping prohibition sought by the bank after much of the FT’s report was followed up in other media. The document suggests that even if the company was bought outright, the Bank may have to provide support until 2010 when the stricken lender could still be drawing down £6bn. Read more background and FT analysis of the memo, and see also FT.com’s special section on Northern Rock.

This entry was posted by Gwen Robinson on Wednesday, November 14th, 2007 at 5:55 and is filed under Capital markets, M&A, Private equity. Tagged with orthern Rock. Edit this entry.