Wyelands Bank, majority-owned by Liberty Steel tycoon, Mr Sanjeev Gupta, faces liquidation if a buyer is not found.
Just two months ago the Bank of England demanded the bank repay customer deposits as it was fearful over its financial position. Now is it crucial that new investors are found or else the future of the bank is not assured.
Wyelands was purchased by Mr Gupta for £30m in 2016, when it was more formerly known as Tungsten Bank. The aim was to ‘’provide financial solutions to the commodities, steel and engineering industries.’’ The British industrialist also invested into the bank, providing a £75m loan in May 2020. However, this time round, no further investment was given.
The CEO of Wyelands heads the search for new investment.
The process of repaying customer deposits is near completion with around £194m deposits repaid. Remaining borrowers have been told they must find new financing facilities from other lenders within the coming months.
The Financial Times reports more.