B&B in sell-off.BRADFORD & Bingley sold nearly a quarter of its business yesterday as it moved to shore up its finances in the face of a sharp downturn Downturn The transition point between a rising, expanding economy to a falling, contracting one. downturn A decline in security prices or economic activity following a period of rising or stable prices or activity. in trading. The UK's biggest buy-to-let lender said full-year profits were set to suffer as more borrowers fall behind with their repayments. The update came as B&B confirmed it was selling 23% of the business to private equity firm Texas Pacific Group in a move set to raise pounds 179m. B&B said it had racked up an pounds 8m pre-tax loss in the four months to the end of April after suffering a further pounds 89m hit from the credit squeeze credit squeeze Restricted bank lending that is accompanied by rising short-term interest rates and a decline in economic growth. Credit squeezes are generally attributed to policy actions of the Federal Reserve. and a pounds 36m charge from increasing arrears A sum of money that has not been paid or has only been paid in part at the time it is due. A person who is "in arrears" is behind in payments due and thus has outstanding debts or liabilities. . The group also restructured its rights issue, with shareholders being offered shares at 55p, rather than 82p. |
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