N.Rock loans from BoE may top 26 billion pounds: data

A Northern Rock bank branch is photographed through a rain-covered lens in central London, November 19, 2007. British mortgage lender Northern Rock is likely to have borrowed a further 1.1 billion pounds ($2.3 billion) from the Bank of England (BoE) in the past week, according to BoE balance sheet data released on Thursday.

LONDON (Reuters) - British mortgage lender Northern Rock NRK.L is likely to have borrowed a further 1.1 billion pounds ($2.3 billion) from the Bank of England (BoE) in the past week, according to BoE balance sheet data released on Thursday.

That would be down from its estimated loan of 2 billion pounds in the week before last.

The latest data indicate Northern Rock has borrowed up to 26.4 billion pounds since being offered emergency funds on September 14. The estimate is based on the "other assets" category in the Bank of England's weekly accounts, which economists say would include the central bank's "lender of last resort" support.

The BoE and Northern Rock have refused to comment on how much the central bank has lent, but UK finance minister Alistair Darling said this week the balance sheet data gave a good guide.

The amount being borrowed by Northern Rock has been far higher than analysts had expected and is a key issue for potential buyers as turmoil in financial markets could make it expensive to refinance.

Northern Rock has been engulfed in a crisis since the Bank of England stepped in to offer it emergency loans after it was unable to raise funds in financial markets, and has left the bank searching for a buyer for all or parts of its business.

Potential buyers include a consortium led by Richard Branson's Virgin Group; investment company Olivant; U.S. buyout firm JC Flowers; and Cerberus, another buyout firm, in tandem with U.S. finance firm GMAC.

But Northern Rock shares have fallen for the last seven days and by 1530 GMT were down a further 1 percent at 84 pence, on an expectation bidders will offer little to shareholders. The bank's market value is now 340 million pounds, down 93 percent this year.

Adam Applegarth, who resigned as chief executive last week but may stay until February to help the sale process, will receive up to 380,000 pounds when he leaves, a person familiar with the matter said.

Applegarth will not receive severance pay, bonus or pension top-up, but is entitled to up to half his basic annual salary of 760,000 pounds, the person said. The CEO was paid 1.36 million pounds last year, including 660,000 pounds in bonus.

(Reporting by Steve Slater)