LONDON— Le Meridien’s management team is continuing talks with financial creditors and equity investors to put together a rescue package, according to a report by Dow Jones Business. A team from Chairman Guy Hands private-equity firm, Terra Firma— Chief Executive Stephen Alexander and Martin Angle— reportedly have been brought in to work with Finance Director David Maloney on a financial restructuring plan to manage an estimated £1 billion ($1.62 billion) debt. The “rescue” package concentrates on maintaining the 140-hotel chain as an ongoing business; management isnt actively soliciting external bids, the report said. As with the speculation surrounding Six Continents earlier this year as it looked to demerge its lodging business unit, international hoteliers Hilton Group PLC, Marriott International, Inc. and Accor S.A. are reported as interested in the portfolio or individual hotels, although no approaches were confirmed. Le Meridien’s worth is estimated between £600 million ($973.5 million) and £700 million ($1.135 billion) and there are 20 financial creditors, including most of the major lending banks, the report said. Hands bought Le Meridien for £1.9 billion ($3.08 billion) almost two years ago when he headed Japanese bank Nomura Holdings Inc.s Principal Finance Group. Nomura is still the hotel groups majority equity investor; other investors are Royal Bank of Scotland Group PLC , Abbey National PLC and private equity house Alchemy Partners. Le Meridien owns about 40 hotels; the rest are managed. Royal Bank of Scotland owns 12 hotels, including the Grosvenor House, Cumberland and Waldorf hotels here, which it operates under sale and leaseback arrangements. SOURCE: Dow Jones Business
