Bank loans 'repaid with further borrowings'

The Maxwell Trial: Day 27

Brian Brown of Lloyds Bank told an Old Bailey jury yesterday how Robert Maxwell repaid millions of pounds' worth of bank loans by borrowing from other banks.

"The money went round the houses," Mr Brown, an executive in Lloyds' corporate lending division, said.

He said Lloyds was part of a group of banks which provided the Maxwell group with a "jumbo" loan facility of pounds 3bn. One of the loans, for pounds 105m, was reduced by pounds 20m in September 1991 and wiped out altogether in the following month.

But the jury was told that pounds 80m of the repayment was from a new loan and pounds 5m was from an overdraft facility.

Earlier, the jury had cause to smile at the embarrassment of one of Robert Maxwell's executives when he sat in the tycoon's chair by mistake.

Robert Maxwell - who has been described in court as "at times a domineering bully" - had been delayed for a board meeting in July 1991, just four months before his mysterious death.

When he did march into the room Michael Stoney, one of his finance experts, had the misfortune to be sitting in his chair. This was immediately spotted by Maxwell. Mr Stoney hurried to another place and then left the room, Stephen Wootten an auditor with Coopers & Lybrand, recalled. The court did not hear how Mr Maxwell reacted, but the jury was told that the executive very quickly moved to another chair and soon walked out of the meeting.

Mr Wootten also told the jury that information on a huge loan from the pension fund to a privately owned Maxwell company was withheld from him at a meeting held in July 1991, four months before the tycoon's death.

The purpose of the meeting, attended by Robert Maxwell and his legal and accountancy advisers, was to sign the accounts for Robert Maxwell Group (RMG) for the year to 31 December 1990, to discuss the solvency of the company and decide if it was right for it to be declared a going concern.

Mr Wootten said that he did not know at the time that the pension fund company, Bishopsgate Investment Management, had lent about pounds 85m to RMG. He was also not told that RMG owed another pounds 200m to Maxwell Communications Corporation. He did not discover that this information had been witheld until after Maxwell's death.

He also did not know that 19 days before RMG had bought Scitex shares for about pounds 100m from the pension fund company. He was told about this transaction about a month later, but he did not consider it had any significance at the time. It was not until after Maxwell's death on 5 November 1991, that he became concerned about it.

Robert Maxwell's sons Kevin and Ian, along with finance director Robert Bunn and financial advisor Larry Trachtenberg, deny conspiracy to defraud by misusing pounds 22m worth of shares in the Israeli company Teva belonging to the pension fund to try to prop up the Maxwell empire after the tycoon's death.

Kevin alone denies a similiar charge of conspiring with his father to misuse pounds 100m worth of Scitex shares to pay private Maxwell company debts.

News
Susan Sarandon described David Bowie as
peopleSusan Sarandon reveals more on her David Bowie romance
Sport
Arsenal supporters gather for a recent ‘fan party’ in New Jersey
football
Sport
sportDidier Drogba returns to Chelsea on one-year deal
News
i100
PROMOTED VIDEO
Arts and Entertainment
The Secret Cinema performance of Back to the Future has been cancelled again
film
Life and Style
Balmain's autumn/winter 2014 campaign, shot by Mario Sorrenti and featuring Binx Walton, Cara Delevingne, Jourdan Dunn, Ysaunny Brito, Issa Lish and Kayla Scott
fashionHow Olivier Rousteing is revitalising the house of Balmain
Arts and Entertainment
Christian Grey cradles Ana in the Fifty Shades of Grey film
filmFifty Shades of Grey trailer provokes moral outrage in US
News
people
News
BBC broadcaster and presenter Evan Davis, who will be taking over from Jeremy Paxman on Newsnight
peopleForget Paxman - what will Evan Davis be like on Newsnight?
Life and Style
fashionCustomer complained about the visibly protruding ribs
News
ebookA unique anthology of reporting and analysis of a crucial period of history
News
newsComedy club forced to apologise as maggots eating a dead pigeon fall out of air-conditioning
Arts and Entertainment
Jo Brand says she's mellowed a lot
tvJo Brand says shows encourage people to laugh at the vulnerable
Life and Style
People may feel that they're procrastinating by watching TV in the evening
life
News
Tovey says of homeless charity the Pillion Trust : 'If it weren't for them and the park attendant I wouldn't be here today.'
people
Sport
Rhys Williams
commonwealth games
Latest stories from i100
Have you tried new the Independent Digital Edition apps?
Independent Dating
and  

By clicking 'Search' you
are agreeing to our
Terms of Use.

iJobs Job Widget
iJobs Money & Business

Senior Risk Manager - Banking - London - £650

£600 - £650 per day: Orgtel: Conduct Risk Liaison Manager - Banking - London -...

The benefits of being in Recruitment at SThree...

£18000 - £23000 per annum + Comission: SThree: SThree, International Recruitme...

Test Analyst - UAT - Credit Risk

£280 - £300 per day + competitive: Orgtel: Test Analyst, Edinburgh, Credit Ris...

Trainee Recruitment Consultants - Banking & Finance

£20000 - £25000 per annum + OTE £40,000: SThree: SThree Group have been well e...

Day In a Page

Evan Davis: The BBC’s wolf in sheep’s clothing to take over at Newsnight

The BBC’s wolf in sheep’s clothing

What will Evan Davis be like on Newsnight?
Finding the names for America’s shame: What happens to the immigrants crossing the US-Mexico border without documents who never make it past the Arizona desert?

Finding the names for America’s shame

The immigrants crossing the US-Mexico border without documents who never make it past the Arizona desert
Inside a church for Born Again Christians: Speaking to God in a Manchester multiplex

Inside a church for Born Again Christians

As Britain's Anglican church struggles to establish its modern identity, one branch of Christianity is booming
Rihanna, Kim Kardashian and me: How Olivier Rousteing is revitalising the house of Balmain

Olivier Rousteing is revitalising the house of Balmain

Parisian couturier Pierre Balmain made his name dressing the mid-century jet set. Today, Olivier Rousteing – heir to the house Pierre built – is celebrating their 21st-century equivalents. The result? Nothing short of Balmania
Cancer, cardiac arrest, HIV and homelessness - and he's only 39

Incredible survival story of David Tovey

Tovey went from cooking for the Queen to rifling through bins for his supper. His is a startling story of endurance against the odds – and of a social safety net failing at every turn
Backhanders, bribery and abuses of power have soared in China as economy surges

Bribery and abuses of power soar in China

The bribery is fuelled by the surge in China's economy but the rules of corruption are subtle and unspoken, finds Evan Osnos, as he learns the dark arts from a master
Commonwealth Games 2014: Highland terriers stole the show at the opening ceremony

Highland terriers steal the show at opening ceremony

Gillian Orr explores why a dog loved by film stars and presidents is finally having its day
German art world rocked as artists use renowned fat sculpture to distil schnapps

Brewing the fat from artwork angers widow of sculptor

Part of Joseph Beuys' 1982 sculpture 'Fettecke' used to distil schnapps
BBC's The Secret History of Our Streets reveals a fascinating window into Britain's past

BBC takes viewers back down memory lane

The Secret History of Our Streets, which returns with three films looking at Scottish streets, is the inverse of Benefits Street - delivering warmth instead of cynicism
Joe, film review: Nicolas Cage delivers an astonishing performance in low budget drama

Nicolas Cage shines in low-budget drama Joe

Cage plays an ex-con in David Gordon Green's independent drama, which has been adapted from a novel by Larry Brown
How to make your own gourmet ice lollies, granitas, slushy cocktails and frozen yoghurt

Make your own ice lollies and frozen yoghurt

Think outside the cool box for this summer's tempting frozen treats
Ford Fiesta is UK's most popular car of all-time, with sales topping 4.1 million since 1976

Fiesta is UK's most popular car of all-time

Sales have topped 4.1 million since 1976. To celebrate this milestone, four Independent writers recall their Fiestas with pride
10 best reed diffusers

Heaven scent: 10 best reed diffusers

Keep your rooms smelling summery and fresh with one of these subtle but distinctive home fragrances that’ll last you months
Commonwealth Games 2014: Female boxers set to compete for first time

Female boxers set to compete at Commonwealth Games for first time

There’s no favourites and with no headguards anything could happen
Five things we’ve learned so far about Manchester United under Louis van Gaal

Five things we’ve learned so far about United under Van Gaal

It’s impossible to avoid the impression that the Dutch manager is playing to the gallery a little