RedBird IMI is trying to recover £600mn from the Telegraph.

RedBird IMI officially started the process of selling the UK’s Telegraph and Spectator magazines in an effort to recoup £600mn that was spent last year on its attempts to take control media assets.

According to sources familiar with the matter, the US investment group, whose money comes from Abu Dhabi’s government, sent the deal information memo — the document that contains sales details — on Friday to potential buyers.

RedBird IMI launched the second auction for the Telegraph in a single year, just days after its publisher announced that Barclays had extracted £278mn from the group. This led to the group suffering a large loss. The company was controlled by the family until it became seized last summer by Lloyds Banking Group after failing to pay bad debts in excess of £1bn.

The sale of the conservative broadsheet comes just two weeks before Britain’s general elections, in which the Conservative government will likely lose.

People familiar with the process said that RedBird IMI wanted first-round offers by the end July. This would lead to a deal likely in the later summer. The newspaper would have been without a permanent owner since more than a full year. It has been managed by a small team of independent directors.

A person familiar with the deal reported that more than 20 parties, including media owners and investment groups from the UK, had received the information to prepare for the initial bids.

Raine and Robey Warsh, the group’s advisors, have narrowed down a list of candidates from an initial list after receiving expressions interest, according to people. Investors have the option to bid on the Telegraph, the Spectator or both.

The lower price range of the Spectator was predicted by bidders to attract a greater number of offers.

RedBird IMI’s spokesperson confirmed the sale process had begun. The spokesperson added that “prospective owners can now submit their first bids as of today.” It was a long and thorough process that involved talking to many interested parties around the world. It is not surprising that interest in the project has remained high.

RedBird IMI, a company that was not expected to be involved in the deal, bought the debts behind the newspaper. This abruptly ended the initial sale process.

The UK government then blocked this deal, with the option of converting to full ownership. They were concerned about press freedoms due to the funding that RedBird IMI received from Abu Dhabi.

This decision was made after the results of the group were published, giving potential bidders up-to-date financial information. The Barclay family has taken loans out of the Group that will not be repaid. This results in a £278mn reserve. The publisher also warned about “potential irregularities in the recording” of historical transactions between companies within a group.

The provision caused the newspaper to lose £245mn in spite of a 5% increase in turnover, which reached £268mn. A person with knowledge of the situation said that the family has taken out other loans from the Spectator. They said that these loans were in lieu of dividends.

The sale of the business will not be affected by any potential financial irregularities. All assets will be placed in a separate structure, as part of the “hive-down” process. According to accounts released this week, after the provisions were removed, the underlying earnings increased by more than a quarter, to £60mn.

A spokesperson from Barclays stated: “Throughout family ownership, business has been responsibly managed and within legal frameworks. All accounts have been approved by auditors.”