By: RadhakrishnaNS
Wyelands Bank announced that no fund will be provided by its biggest shareholder Sanjeev Gupta.
The trouble started in March when the Bank of England ordered Wyelands to repay £194m to its retail depositors.
Wyelands said yesterday it had handed back almost all of the sum, apart from £600,000 subject to probate or old accounts still being traced.
In March last year, Gupta lent Wyelands £75m, of which £42.9m has been converted into equity. That came as Wyelands’ board decided to carry out a “solvent wind-down of the balance sheet”, keeping regulators informed about the process.
Gupta has now indicated that he will not be providing further funds to finance a new strategy for the bank. Following several enquiries from independent third parties, the board has authorised chief executive officer Stephen Rose to engage with potential new investors to assess the potential to take Wyelands forward under new ownership, Wyelands said in a statement.
