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Banks seize control of Foxtons

Bank of America and Mizuho have become stakeholders in Foxtons following a refinancing deal that will see the London agency’s debt slashed by 60% to £120m.

The lenders are thought to have been offered their respective stakes in return for them agreeing to reduce Foxton’s £300m debt. The banks join BC Partners, which is understood to remain the major stakeholder in the Foxtons, which it bought from the agency's founder, Jon Hunt, in 2007. Hunt scooped £370m for the business, which he founded in 1981.

In a statement from BC Partners, the private equity firm states: "Foxtons confirms that, subject to Financial Services Authority approval, it has agreed a consensual capital reorganization with its existing banks and shareholders. This reorganization delivers a sound balance sheet to complement Foxtons' strong trading performance and supports the company in continuing to build its position as London's leading estate agency."

Michael Brown, chief executive of Foxtons, says: "Despite the credit crunch and recession, the strength of Foxtons brand and business model, and the quality of our people, mean we have continued trading profitably. Our strengths and future potential lie behind the capital reorganization, and we are delighted we will continue to have the support of BC Partners and our banks going forward. We continue to face the future with considerable confidence."

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