Le Méridien may be saved from collapse

Things could be looking up for beleaguered hotel chain Le Méridien after an expected administration failed to materialise today. The group is locked in talks about ways to save it from being put into administration by its lenders. Talks are continuing over the weekend and Le Mériden hopes to make an announcement early next week.

US investment bank Lehman Brothers is thought to be involved in those talks and offering a £150m cash injection to rescue the hotel chain from the brink of collapse. Sources close to Le Méridien said there were “positive signs” for the group.

Le Méridien was placed under the control of its lenders, which include the Royal Bank of Scotland, Nomura, Abbey National and Alchemy Partners, in April after a collapse in trading left the hotel group with a value of just £700m and debts of £1b.

The banks threatened to call in the administrators unless Le Méridien's bosses came up with a rescue plan by today.