Barclay family looks to stall crucial court case - report

The Barclay family is seeking to postpone a court case that would see insolvency proceedings get underway for one of their key holding companies, it was reported on Monday.

According to Sky News, the hearing is due to start later on Monday in the British Virgin Islands.

But the family wants Lloyds Banking Group to have the hearing adjourned, as negotiations remain ongoing about the £1bn they owe the high street lender.

Lloyds took control of the Daily Telegraph, Sunday Telegraph and Spectator, which the family has owned since 2004, in June in a long-running dispute about the unpaid debt.

A formal sale process of the titles was launched last week. The Barclays had previously tabled a £1bn bid, as they sought to wrest back control and force Lloyds to abandon the auction.

However, the bank is understood to have rejected the approach as it wanted to proceed with a full auction. A number of parties have already expressed interest in the titles, including Germany’s Axel Springer and Daily Mail owner Lord Rothermere.

Monday’s court case, which is separate to the auction, relates to the prospective liquidation of the Penultimate Investments Holding Company. Lloyds brought the legal case to enable it to collect the proceeds from the impending sale.

The newspapers are forecast to achieve a price tag of between £500m and £700m, while the Spectator is expected to fetch around £70m.

Both Lloyds and the Barclay family declined to comment on the report.