J.C. Flowers & Co.
has made a bid for troubled U.K. mortgage lender
Dow Jones Newswires
reported, citing a source familiar with the deal.
The deal includes a 15 billion pounds ($30.75 billion) debt finance intended to repay the
Bank of England's
loan to Northern Rock and more than 1 billion pounds ($2.05 billion) in new equity, according to
. J.C. Flowers also wants an ongoing facility from the Bank of England that would not exceed the 10 billion pounds ($20.5 billion) remaining from the 15 billion pound payment through 2010,
Northern Rock declined to comment on the report Tuesday, according to
. On Monday, the bank issued a statement saying it had begun discussions with parties interested in investing in or acquiring parts of the business. So far, the bank said, those proposals have been inadequate.
The Bank of England in September stepped in to
bail out Northern Rock, after the lender was unable to finance its money market operations and lines of depositors descended on bank branches. The scene was similar to the run on
in California, before the U.S. mortgage lender received a
$2 billion infusion of capital from
Bank of America
Mortgage lenders have taken a beating recently. The quasi-governmental U.S. mortgage giant
on Tuesday posted a
$2 billion third-quarter loss, just a week after sister company
plummeted on a
magazine report questioning the way it reported its credit losses.
If J.C. Flowers is about to make a bid for the bank, it would come just months after it abandoned a deal for another lender amid the credit crisis. The firm in September
backed out of a $25 billion deal to buy student loan provider
. Sallie has taken J.C. Flowers to court to keep the deal alive.