TalkTalk boss Dunstone agrees £400m deal with creditors | Business News

Sir Charles Dunstone, the businessman behind the TalkTalk broadband empire, has struck a £400m deal with his creditors to avoid the threat of a debt default.

Sky News has learned that TalkTalk will announce later on Monday that its shareholders – who include Sir Charles – have agreed to immediately inject £65 million into the company.

This will be followed by a further injection of £170m, with assets currently held separately such as its subsidiary Virtual1 and the Ovo and Shell customer bases also contributed to the group.

In total, the refinancing is worth more than £400 million, according to insiders.

Ares Management and Toscafund will also participate in the capital injection.

TalkTalk’s bank creditors and bondholders agreed, in return, to extend impending debt maturities from next November and February until fall 2027.

The extension will provide TalkTalk, which has almost four million UK broadband customers, with crucial wiggle room to implement the business plans for its PlatformX wholesale network and its consumer businesses.

TalkTalk is also expected to confirm a series of leadership changes – with chief executive Tristia Clarke becoming a non-executive director and being replaced by James Smith – which will take place next month.

Sir Charles will continue as chairman of the group.

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TalkTalk declined to comment.