TalkTalk, one of the big telecoms companies in the UK, is to tap its owners for several hundred millions of pounds. It was founded by Sir Charles Dunstone, and about 4 million customers are currently subscribed to its broadband services. The discussions for the new money will be led by Sir Charles with other key people from TalkTalk when they meet with the company’s lenders next week.

The meeting is very critical since it may be the way forward to helping TalkTalk fix its financial problems. The company has been trying for months to find a way of restoring its financial situation. Under the planned proposal, Sir Charles is expected to provide more than £200 million to help TalkTalk alongside Toscafund and Ares Management. This amount will be used to finance daily operations and other running costs.

More Talks with Another Investor

The same time sees TalkTalk in talks with the large Australian bank Macquarie over a bigger investment in TalkTalk’s wholesale network business, known as PlatformX. However, they haven’t reached an agreement yet.

What the CFO Says

James Smith, chief financial officer of TalkTalk, recently met with debt investors. He informed them that they are very close to completing the new capital investment. He said, “We anticipate agreement on new capital investment into the business in the near future, and discussions to achieve that are ongoing.”

Ongoing Discussions

He also added that they are in discussion with a potential new investor and new lenders. Meanwhile, the current shareholders stand ready to provide the new funding of more than £200 million. This itself shows the commitment and concern of current owners of the company towards supporting TalkTalk at this moment.

Importance of the New Funding

This new funding comes at the very moment TalkTalk needs it. The funding is going to help the company with working capital—the money required to run daily activities—and also help in covering operational costs, ensuring that TalkTalk can continue serving its millions of customers.

The Way Forward

Next week will prove to be the real defining moment for TalkTalk. The meeting with the lenders and advisers will thrash out the best route to introduce this new funding into the business. If everything goes well, once again it would be a great leap forward for TalkTalk in helping the company come out of its present financial crisis and progress without any hindrance.

Ultimately, TalkTalk is working hard to convince major shareholders to inject significant funding. This could be nailed down, especially in the talks with the lenders next week. Supported by its largest shareholder, Sir Charles Dunstone, and other shareholders, TalkTalk is taking a path to get itself back on track on financial grounds and to continue serving millions of customers.