Boxclever wrangle nears end

By LUCINDA KEMENY
Updated:

 

BOXCLEVER, the television rentals business that was forced to put part of its operation into administration last year, could be sold by Christmas after months of wrangling.

American fund Fortress Investment Group tabled a £350m bid last February, but was blocked from completing the acquisition because of a dispute between two lenders, the German bank WestLB and French bank CDC.

WestLB, whose principal finance unit was formerly run by City dealmaker Robin Saunders, was forced to write off £450m after a £748m loan to Boxclever went disastrously wrong.

Endeva, the service support arm of Boxclever, was put into administration when it failed to expand as quickly as expected. But while WestLB was happy to go ahead with a sale, CDC, with about £130m-worth of Boxclever bonds, was said to be unhappy. It would have recouped only half what the company was supposedly worth.

However, CDC is now expected to collect more of the cash from the sale. An agreement on the deal could now be signed within weeks.

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