Statement from AlixPartners, the receivers over shares in B.UK Limited

“Alastair Beveridge and Ben Browne of AlixPartners have been appointed by Bank of Scotland as receivers over the shares in B.UK Limited, a holding company within the Penultimate Investment Holdings Limited (PIHL) Group which indirectly owns the Telegraph Media Group Limited (TMG) and The Spectator (1828) Limited (The Spectator). Bank of Scotland has made this appointment under its rights as a lender, to consider alternative strategies to repay a facility with PIHL that remains in default despite extensive discussions to resolve the situation.

Despite further discussions, a resolution could not be reached. Following their appointment, the receivers initiated changes to the boards of certain subsidiaries of B.UK Limited including TMG and The Spectator to secure control of the assets of the PIHL Group in order to facilitate a resolution, which may involve sales of the Telegraph and Spectator businesses. Meanwhile, the Bank remains willing to continue discussions with PIHL.

Independent directors Stephen Welch and Boudewijn Wentink have been appointed to the boards of Ellerman Investments Ltd, TMG and The Spectator. Nicholas Hugh and Richard Neal remain in place as directors of TMG. Aidan Barclay, Howard Barclay and Philip Peters have been removed as directors of Ellerman Investments Ltd, TMG and The Spectator, and Rigel Mowatt has been removed as a director of The Spectator.

The Receivership over the shares in B.UK Limited is in no way related to the financial health or performance of the Telegraph or Spectator businesses and we do not anticipate any
operational changes to the businesses or their employees. Neither the Telegraph Media Group nor the Spectator are entering administration. In the meantime, the day to day running of all operating subsidiaries held by B.UK Limited will continue as normal.”