RBS supports revised Le Meridien plan

Royal Bank of Scotland (RBS) is believed to be backing a revised rescue plan from Guy Hands for Le Meridien, with the hotel group on the verge of collapse.

RBS is thought to have given support to the £150 million package put together by Terra Firma, the investment vehicle of Guy Hands, the private equity financier, and Prince Alwaleed bin Talal, the Saudi billionaire.

If the proposal were accepted it would be a crucial step in the survival of Le Meridien. However, any plan still needs the go-ahead from the group's 14 senior bank lenders who are owed a sum in the region of £750m by the company.

If agreement cannot be reached there is the danger that Le Meridien may be put into administrative receivership.