Lenders offer Taylor Wimpey breathing space
Lenders to Taylor Wimpey are considering basic terms for restructuring the struggling construction company’s finances that would give it breathing space to trade through the credit crisis until 2012.
The terms are still to be negotiated but are the building blocks of a plan that would extend the maturity of the company’s debts – which include a mix of bank debt, privately placed notes and publicly traded Eurobonds – to 2012, with the exception of a Eurobond due in 2019, according to people familiar with the situation.
The company has been in talks with leading holders of its bank debt, as well as its privately placed notes, to avoid the risk of a breach of its covenants. The proposals also involve resetting the company’s set of debt covenants to give it breathing space.
The process has progressed with the terms now being circulated among the wider group of lenders, ahead of expected talks between the company and a committee of holders of its publicly traded bonds.