Lenders to HMV intend to stop attempts by Apollo Global Management to buy the entertainment group’s debt, which would effectively give it control of the company.
Apollo, a turnaround fund, already speaks for 10% of HMV’s debt and will have to negotiate with six banks to scoop up more.
Lenders, however, are unwilling to sell the debt at a big discount and are pinning their hopes on the chance that the retailer can survive without being taken over.
A source told the Mail on Sunday: “There is a feeling among the banks that they have come this far, so let’s see it through.”
Before Christmas HMV warned that it would likely breach financial covenants in January.
However the retailer has so far enjoyed strong support from suppliers and chief executive Trevor Moore has expressed confidence that a way forward will be found.