MWB's novel plan to cut debt

PROPERTY group Marylebone Warwick Balfour is set to unveil an 'innovative' scheme to deal with its hefty debts.

But the group, which owns London's Howard Hotel and top store Liberty, is also set to reveal a slide into losses and is probably about to axe its dividend.

MWB shares have slumped from 240p last May to 81p, cutting its market value to £94m. Its last reported debts were £358m, swollen by a string of acquisitions. Though these brought in quality assets, the timing was unfortunate. In particular, Liberty's trading was hit by the drop in US tourists.

There have been fears of a rights issue but MWB is more likely to seek a way to satisfy all its stakeholders, including banks and loan stock owners. New investors may be brought in, possibly through limited partnerships.

The group might even turn assets over to a property unit trust, or hive off some divisions which would then attract takeover bids.

MWB owns 77% of the Malmaison hotels, 68% of Liberty and 63% of office renter MWB Business Exchange.