Thursday July 17, 04:07 PM
Green Light For Lender Fund Boost
By Sky News
Just over 50 investors gathered at a special meeting to give beleaguered buy-to-let lender Bradford & Bingley the green light for a balance sheet boost. The EGM to decide whether the £400m rights issue should go ahead was called after
two previous fundraising schemes collapsed.
Chairman Rod Kent told the small group of investors who assembled at Sheffield Arena: "If we keep our heads, we will get through it."
The vote came as Bradford & Bingley's battered shares remained below the 55p price being offered to investors under the scheme.
In his opening address, Mr Kent told those present that mortgage lending was a cyclical business which involved a two year downturn every decade.
He told the 56 shareholders who had gathered in the 15,000 seat arena: "The process of raising capital has not been a smooth or an easy one for Bradford & Bingley.
"We completely understand that this has not been a comfortable process for our
shareholders, our customers and our employees."
Mr Kent responded to questions by saying he did not think executives would get bonuses this year.
He also confirmed that his remuneration package did not include a bonus scheme.
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