Labour is struggling to renegotiate with 11 wealthy businessmen up to £14m worth of loans falling due over the coming months.
The secret credit extended by the businessmen reportedly helped the party out in 2005 and all but one of the millionaires have met Jon Mendelsohn, chief party fundraiser, at accountancy firm KPMG to negotiate a single agreement to defer the loans for up to nine years, the Financial Times reports.
However, property tycoon Andrew Rosenfeld was not at the meeting, triggering alarm among Labour officials he might want his money back on time while others, including Chai Patel and Sir David Garrard, are understood to be moving closer to signing a deal after long and complicated discussions.
Labour has insisted its auditors will sign off the party’s annual accounts by Monday, in spite of fears about its increasingly precarious financial position.
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