JC Flowers Submits Offer for Northern Rock: Source

U.S. buyout firm JC Flowers has submitted an offer for stricken British bank Northern Rock that would include an offer to its shareholders at a "nominal value," a person familiar with the situation said.

The proposal includes the repayment of 15 billion pounds ($30.8 billion) in emergency loans to the Bank of England, and the repayment of further borrowing estimated at 10 billion pounds over time, probably by the end of 2010, the person said on Tuesday.

The proposal would see JC Flowers inject at least 1 billion pounds in new investment to support the bank's balance sheet and underwrite a new business plan.