RBS considers Jurys Inn debt-for-equity swap
THE ROYAL Bank of Scotland is considering taking a stake in Jurys Inn as part of a debt-for-equity swap in which lenders to the hotelier will write down as much as £250m of borrowings.
The taxpayer-owned bank, together with other lenders Allied Irish Banks (AIB) and Irish Banking Resolution Corporation (IBRC), are considering three plans to restructure the hotel chain’s £650m debt.
One of the options being discussed could see Jurys’ owners – the Oman Investment Fund and Dublin-based private-equity firm Avestus Capital – inject fresh financing into the company of around £160m, although this could be less if RBS takes a stake, a source close to the company said.
RBS is understood to be the only bank interested in taking a stake. AIB and IBRC were unavailable for comment while RBS and Jurys Inn declined to comment.
Avestus, formed by former Irish tax inspector Derek Quinlan, led the buyout of Jurys Inns in 2007 for €1.1bn, later selling a 50 per cent stake to Oman Investment Fund.
Jurys Inn has 32 three-star hotels in Ireland, Britain and the Czech Republic