CBI extends overdraft in fresh move to shore up finances


The CBI, the business lobbying group, has negotiated an extension of its overdraft in a fresh move to shore up its balance sheet after a year in which it came close to collapse.

Sky News has learnt that in recent weeks the CBI and a syndicate of high street lenders have agreed an increase in its borrowing capacity.

People close to the talks said it reflected a slower-than-expected return of corporate members to the group, even as it has started to rebuild its credibility under new chairman Sir Rupert Soames.

The CBI teetered on the brink of collapse for much of last year after a sexual misconduct scandal forced out its director-general and triggered an exodus of prominent members.

Read more:
CBI scandal: Police ‘not able to progress’ with almost all allegations
CBI settles legal case brought by sacked boss Tony Danker over misconduct allegations

According to the business lobby group’s most recent annual report and accounts, it was able to survive the aftermath of a sexual misconduct scandal “through the backing of key members, the use of reserves, support from creditors and with bank financing”.

“The bank financing is due to terminate on 30 September 2024, after which it is the board’s current intention to look to renew the facility if required.

More from Business

Self-styled as “the voice of British business”, the CBI has been regaining its voice in Westminster, holding private talks with politicians from both main parties.

It has slashed costs by axing a chunk of its workforce and closing most of its overseas offices.

The CBI briefly entertained autumn talks about a merger with Make UK, the manufacturers’ body, but these were abandoned.

A spokeswoman for the CBI declined to comment on its overdraft extension but said: “Like any small or medium-sized business, we have to manage our cashflow and utilise financing to do so.”

Articles You May Like

Harry Kane’s children involved in three-car crash in Germany
Six killed and several injured, with baby in surgery, after Sydney shopping centre attack
Parents of teenager who shot dead four classmates in the US jailed for manslaughter
The upcoming bitcoin halving is different from others before it. Here’s what investors need to know.
Oracle’s Larry Ellison thinks every government will want to build a ‘sovereign’ AI cloud in the future