Maxwell Empire Could Fall Apart Because of High Debts, London Worries about Impact of Maxwell's Death on His Companies

By Alexander MacLeod, Monitor | The Christian Science Monitor, November 8, 1991 | Go to article overview

Maxwell Empire Could Fall Apart Because of High Debts, London Worries about Impact of Maxwell's Death on His Companies


Alexander MacLeod, Monitor, The Christian Science Monitor


THE chances of the late Robert Maxwell's publishing empire remaining intact following his death Tuesday are virtually nil.

That appears to be the consensus among City of London financial analysts assessing the prospects of the two main chunks of Mr. Maxwell's far-flung holdings - Maxwell Communications Corporation (MCC) and Mirror Group Newspapers (MGN).

One banking expert put the tycoon's net indebtedness at British pounds2.2 billion ($3.9 billion). When trading in MCC shares resumed Thursday, they fell 63 cents to $1.53. MGN shares rose 73 cents to $2.15 amid speculation that the company, which publishes the London Daily Mirror, may become a takeover target.

Details of Maxwell's finances may take months to unravel, according to Valerie Conner, a banking expert with the London finance house Henderson Crosthwaite. "Much of the information was regarded as a family secret, and there is a mystery about the full extent of Maxwell's personal indebtedness and the true condition of his publicly listed companies," she says. Maxwell's two sons, Ian and Kevin, have taken control of the sprawling publishing interests.

Ms. Conner estimates Maxwell's private debts at around British pounds800 million. Earlier this year, amid reports that Maxwell's entire holdings were in debt to the tune of British pounds3 billion, he began selling off assets. Among the sales were Pergamon Press, his first major publishing enterprise launched in the 1960s, and TV interests in Britain and France.

These sales lowered his indebtedness to the British pounds2.2 billion thought to be outstanding when, it is presumed, he died and fell off his ocean-going yacht Lady Ghislaine as it was cruising at night near Spain's Canary Islands.

Kevin Maxwell, the new chairman of MCC, confirmed that more than 50 banks around the world had exposures to his father's companies, and there was no disguising City of London anxiety about the impact of Maxwell's death on the company's fortunes.

Bronwen Maddox, a financial analyst with the London Financial Times, said there was concern about the fact that much of Maxwell's private indebtedness was secured by loans on his public companies. …

The rest of this article is only available to active members of Questia

Sign up now for a free, 1-day trial and receive full access to:

  • Questia's entire collection
  • Automatic bibliography creation
  • More helpful research tools like notes, citations, and highlights
  • Ad-free environment

Already a member? Log in now.

Notes for this article

Add a new note
If you are trying to select text to create highlights or citations, remember that you must now click or tap on the first word, and then click or tap on the last word.
One moment ...
Default project is now your active project.
Project items

Items saved from this article

This article has been saved
Highlights (0)
Some of your highlights are legacy items.

Highlights saved before July 30, 2012 will not be displayed on their respective source pages.

You can easily re-create the highlights by opening the book page or article, selecting the text, and clicking “Highlight.”

Citations (0)
Some of your citations are legacy items.

Any citation created before July 30, 2012 will labeled as a “Cited page.” New citations will be saved as cited passages, pages or articles.

We also added the ability to view new citations from your projects or the book or article where you created them.

Notes (0)
Bookmarks (0)

You have no saved items from this article

Project items include:
  • Saved book/article
  • Highlights
  • Quotes/citations
  • Notes
  • Bookmarks
Notes
Cite this article

Cited article

Style
Citations are available only to our active members.
Sign up now to cite pages or passages in MLA, APA and Chicago citation styles.

(Einhorn, 1992, p. 25)

(Einhorn 25)

1

1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

Cited article

Maxwell Empire Could Fall Apart Because of High Debts, London Worries about Impact of Maxwell's Death on His Companies
Settings

Settings

Typeface
Text size Smaller Larger Reset View mode
Search within

Search within this article

Look up

Look up a word

  • Dictionary
  • Thesaurus
Please submit a word or phrase above.
Print this page

Print this page

Why can't I print more than one page at a time?

Full screen

matching results for page

Cited passage

Style
Citations are available only to our active members.
Sign up now to cite pages or passages in MLA, APA and Chicago citation styles.

"Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn, 1992, p. 25).

"Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn 25)

"Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences."1

1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

Cited passage

Thanks for trying Questia!

Please continue trying out our research tools, but please note, full functionality is available only to our active members.

Your work will be lost once you leave this Web page.

For full access in an ad-free environment, sign up now for a FREE, 1-day trial.

Already a member? Log in now.