The Barclay family, up until yesterday the owners of The Daily Telegraph, have tabled a proposal to restructure its debt with Lloyds Bank in a last-ditch attempt to regain control of the newspaper and its sister titles.
According to Sky News, the Barclay family submitted an offer to Lloyds on Wednesday that would have entailed the bank writing off a portion of the roughly-£1bn it is owed.
Further details of the proposal were unclear, although sources said it had been rejected by Bank of Scotland, the Lloyds subsidiary owed the money.
Sky said the Barclay family is being advised by Houlihan Lokey (NYSE:HLI) (Houlihan Lokey (NYSE:HLI)), the investment bank, on the situation.
A family spokesperson told Sky talks with Lloyds "remain ongoing".
Lloyds Bank appointed receivers to B.UK, a Bermuda-based company controlled by the Barclay family, yesterday, with Alix Partners taking over the running of the group for the bank.
Alix said the papers are currently profitable and operations at the titles are unlikely to be affected by teh ownership wrangles.
Lloyds said the door was open for the Barclay family to regain control if the outstanding loan is repaid.