Addison Lee secures rescue deal as banks take over

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Addison Lee secures rescue deal as banks take over

November 17, 2021 Cab4Now News 0

Addison Lee has secured a rescue deal as its banks struck a deal to take control yesterday.

The struggling cab firm’s lenders have agreed to inject £45m of cash into the business, according to The Telegraph.

It wipes out US private equity firm Carlyle’s investment which bought the taxi operator for £300m in 2013.

The Telegraph reported that the terms of the rescue deal were agreed in meetings on Monday night. A number of the firm’s lenders are reported to have agreed to refinance £100m of loans.

Carlyle put Addison Lee up for sale last year and despite an initial flurry of interest, there has been little progress in a sale because of its sizeable debts.

Private equity firm Cerberus Capital Management is reported to have submitted a bid for the company last month.

Some bids for the firm are understood to have been as low as £40m which would have forced the firm’s lenders to book millions in losses.

Valuations had been as high as £800m but fierce competition from ride-hailing apps like Uber, and a patchy performance from Addison Lee’s US business have contributed to substantial losses.

Addison Lee was founded by John Griffin in 1975. It has since expanded to operate in more than 80 countries.

Addison Lee declined to comment.

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