Wotherspoon is seeking a backer to provide new investment in the Edinburgh-based regeneration and development company after coming under pressure from its lender and 50% owner, Bank of Scotland Corporate.
A source said: “Wotherspoon has been given a date by which to deliver a proposal to take the bank out.”
Proposals being considered include a management buyout or a new vehicle being set up. A deal is expected to be announced early next year.
In the summer, EG revealed that Kilmartin was in the first stages of seeking fresh equity to help corporate restructuring talks with the bank, now part of Lloyds Banking Group (13 June, p17).
The firm had been approaching investors to enable it to pay back £288m of debt scheduled to be refinanced in April 2009. The debt includes a central overdraft of £215m.
Kilmartin is the latest in a long line of joint ventures set up between Bank of Scotland and property entrepreneurs during the boom that have been forced into restructuring talks.
Last month, a number of companies in John Kennedy’s and Rob Brook’s Kenmore Group were put into administration. Kenmore management is looking for backers to fund a buyout of solvent parts of the business.
The group’s Middle Eastern operation was this week bought out by board director Andrew White.
White’s MBO company is in negotiations with a UK-based property fund management business to take a majority shareholding in the new venture.
