The great refinance scramble - corporate UK’s ticking debt timebomb

What’s behind the high wire act to shore up telecoms disruptor TalkTalk, and other major businesses with big debts

Hello Rainmakers,

We hope you are enjoying the summer, and getting a chance to recharge.

This week the telecoms disruptor TalkTalk managed to keep the lights on with a major £400m debt restructure. But they won’t be the last to be frantically trying to work out with lenders what they need to do to deal with big debt mountains.

We look at what awaits Boohoo, and others, facing the ticking clock.

LUCKY DUNSTONE, THE GAMBLER THAT TENDS TO WIN

Sir Charles Dunstone is reportedly a smart man. An entrepreneur and risk taker, who has backed himself to disrupt the competitive market of telecoms in the UK.

When TalkTalk was launched as a subsidiary of Carphone Warehouse in 2003 it did so with a massive gamble, that all customers talk to each other on voice calls for free, forever, which was one of the first big disruptions to the industry. He led the demerger and subsequent listing of TalkTalk in 2010, and remains a major investor following the take-private in 2020.

It’s also been through one of the worst data leaks in UK history that did untold damage to the reputation and confidence of the business.

Through his investment vehicle, Freston Ventures, he invests alongside others in disruptive start-ups across a variety of sectors, including the online estate agency Strike, and food brands Five Guys and Chicken Shop.

But his team at TalKTalk have been locked in complex negotiations over their debt pile recently and he’s overseen a major restructure of the business.