Lloyds has given two extra weeks for the Barclay family to repay the money behind the Telegraph in a deal that would pave the way for Abu Dhabi-backed Redbird IMI to take control of the British newspaper.
Redbird IMI, the investment group run by former CNN boss Jeff Zucker, has agreed to provide funding to the Barclay family to repay the full £1.1bn of debt behind the newspaper group.
International Media Investments, the standalone investment vehicle backed by Manchester City owner Sheikh Mansour bin Zayed Al Nahyan, is also involved in the deal, according to several people familiar with the deal.
However, in an unexpected twist, the debt will have the option to convert into the equity of the newspaper group, which would hand over control to Redbird IMI. The Abu Dhabi-backed parties would seek to exercise this option almost immediately, according to two people familiar with the talks.