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The debt strained TalkTalk Group, which has recently been going through another turbulent time due to payment disputes with suppliers and reports of a possible sale (here, here and here), has reportedly secured an additional £100m funding deal from existing shareholder Ares Management. This may be enough to reduce some of the financial pressures.
The group previously secured a crucial refinancing package worth c. £400m in September 2024 (here and here), which saved it from the immediate risk of a default on its debts (extended debt maturities to September 2027). But as well as the aforementioned challenges, it’s since also suffered another round of redundancies (here) and then there’s the continued shrinking of its customer base from 3.6 to 3.2 million (here).
Suffice to say that the group is still not out of the woods and has continued to hunt for a buyer for different parts of their business (here), while also recently migrating another batch of their legacy broadband and phone customers (here) over to the Utility Warehouse (Telecom Plus). The strain is evident and reports suggest that there’s now been a major development.
According to the City Editor of Sky News, Mark Kleinman (credits to Ionide on our forum for spotting), the provider has just “agreed a £100m funding deal with existing backer Ares Management that will alleviate financial pressure on the company founded by Sir Charles Dunstone. An announcement could come as soon as today“. The full story hasn’t yet been published on Sky News, but it should be live any minute.