The Irish owners of Battersea Power Station say they are in the "final stages" of talks with potential investors in the site and are "absolutely committed" to £5.5bn redevelopment proposals.
In its interim results, Real Estate Opportunities said its “primary focus” is finding a long-term investor in the power station to finance the development and repay debts with Lloyds Banking Group and Ireland’s National Asset Management Agency.
There is £300m of debt with Lloyds and Nama that matured on August 31 without being repaid and REO, which is locked in talks with the lenders, has admitted this “can currently be called on demand”.
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However, Rob Tincknell, the REO director leading the development, said he is the "final stages" of talks with a "few" parties and the lenders are "continuing to support the process".
"All of the investors who have done due diligence support the scheme we have created," he added.
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It is not clear what role REO will play after a deal is struck because it could need to sell a sizeable stake in the power station site to pay off the debt and raise funds for development. The site is valued at £500m.
The potential investors are understood to include sovereign wealth funds, although Mr Tincknell declined to comment.
The debt challenge is the latest twist in the battle to redevelop the power station, which has been dormant since 1983.
There have been various attempts to redevelop the site, including proposals for a theme park and luxury apartments, but they have fallen foul of planning laws and economic downturns.
REO, along with its development partner Treasury Holdings, has won approval from Boris Johnson for a £5.5bn redevelopment which includes 3,400 homes, 10m sq ft of offices and retail space, and the retention of the power station structure.
The risk that the company fails to secure investment into the power station and that Nama, which effectively acts as Ireland’s bad bank, does not support its business plan means the accounts contain a “material uncertainties” warning.
REO’s results for the half-year to August 31 show it is operating with a £684m deficit in shareholder funds. This is because its total borrowings of £1.5bn and interest bill of £97m is larger than the value of its portfolio, which stands at £991m.
Ray Horney, chairman of REO, said: “The group’s primary focus is now on introducing a long-term investor into the Battersea Power Station project, with negotiations continuing with a shortlist of potential global investors.