This article is from the source 'bbc' and was first published or seen on . It will not be checked again for changes.

You can find the current article at its original source at http://news.bbc.co.uk/go/rss/-/1/hi/business/7141761.stm

The article has changed 3 times. There is an RSS feed of changes available.

Version 1 Version 2
Northern Rock chief leaves firm Northern Rock chief leaves firm
(about 3 hours later)
Northern Rock has said that its chief executive Adam Applegarth has now left the company. Northern Rock has announced that its chief executive Adam Applegarth has now left the company.
Mr Applegarth announced in November that it was his intention to step down from his post at the troubled bank.Mr Applegarth announced in November that it was his intention to step down from his post at the troubled bank.
He will be replaced as chief executive by Andy Kuipers, who has been reappointed as a director of the firm, subject to FSA approval. He replacement will be Andy Kuipers, who has been reappointed as a director despite stepping down from the bank's board last month.
Northern Rock's shares collapsed after it was forced to seek emergency funding from the Bank of England in September. Northern Rock also announced that it had taken a £281m hit from the turmoil in the credit markets.
Customers rushed to withdraw their money, and the bank has since been seeking bidders to rescue it. Suitor threat
'Right person' Northern Rock was plunged into crisis when the problems on the world's credit markets forced it to seek emergency funding from the Bank of England in September.
Mr Applegarth has been heavily criticised for the bank's problems. I am confident that he [Andy Kuipers] is the right person to help manage the company through the strategic review process Bryan Sanderson, Northern Rock chairman class="" href="http://newsvote.bbc.co.uk/1/shared/fds/hi/business/market_data/shares/3/23193/intraday.stm">Northern Rock share price
Northern Rock chairman Bryan Sanderson said: "I am delighted that Andy has rejoined the Board as chief executive. The bank is now being kept going by an estimated £25bn loan from the Bank of England and it is seeking bidders to rescue it.
Northern Rock said talks with the Virgin consortium - which has been named as the preferred bidder - had continued "on an accelerated basis".
It also said that it had "engaged" with other parties, including Olivant, the group headed by former Abbey chief Luqman Arnold.
However, it emerged on Wednesday that Olivant is threatening to abandon its attempted rescue, having written to Northern Rock accusing it of frustrating its attempts to negotiate a large line of credit with Citigroup and Deutsche Bank.
Olivant also wants its team to take over the Rock's management with immediate effect, and it says that it will walk away from the deal unless its demands are met.
The Liberal Democrats have argued that Northern Rock should be nationalised temporarily, saying plans to sell the bank will not work.
Criticism
Commenting on the bank's new chief, Northern Rock chairman Bryan Sanderson said: "I am delighted that Andy has rejoined the board as chief executive.
"I am confident that he is the right person to help manage the company through the strategic review process.""I am confident that he is the right person to help manage the company through the strategic review process."
Mr Applegarth said that it was time for him to hand over to new management. In October, Northern Rock chairman Matt Ridley left the bank and was replaced by Mr Sanderson.
The departure of Mr Applegarth comes after Matt Ridley stepped down as chairman of the bank in October and was replaced by Mr Sanderson. Both Mr Ridley and Mr Applegarth were strongly criticised by the House of Commons Treasury Select Committee in October over the bank's business model.
Both Mr Ridley and Mr Applegarth were strongly criticised by the House of Commons Treasury Select Committee in October over the bank's business model that prompted it to ask for emergency funding from the Bank of England on 13 September. Northern Rock said that under the terms of Mr Applegarth's departure, he would be paid "substantially less than the amount which he would otherwise be due" under normal circumstances.
Nationalisation? News of the £281m hit, and worries that Olivant could pull out of the bidding battle, pushed Northern Rock's shares down further. In lunchtime trade, the bank's shares were down 6.6p, or 6.7%, at 92.6p.
It remains unclear what will happen to Northern Rock, which has been in talks with various potential bidders.
Among those considering buying the troubled lender include Sir Richard Branson's Virgin Group, which has been named the preferred bidder.
The Olivant group, led by former Abbey boss Luqman Arnold, has also been named as a contender.
The Liberal Democrats have argued that the bank should be nationalised temporarily, saying plans to sell the bank will not work.
Shares in the firm were down 4% in mid-morning trade at 95p.