LONDON— Conflicting reports have surfaced regarding the fate of Le Méridien, following another weekend of negotiations. According to one newspapers here, a rescue package worth £150 million, or $240 million, for Le Méridien, has been accepted by Royal Bank of Scotland (RBS), giving a significant boost to the chances of the luxury hotel operator avoiding insolvency proceedings. The rescue package allegedly accepted by the bank was put together by Terra Firma, the investment vehicle of Guy Hands, the private equity financier, and Prince Alwaleed, the Saudi billionaire, said the report. However, another newspaper reported that the holders of the banks senior debts, led by Lehman Brothers and RBS, did not accept the proposal and said talks were ongoing. Talks have been ongoing for weeks. If no deal is reached RBS could begin legal action for the non-payment of rent as early as tomorrow, sources said.
