Barratt Developments will say today it has reached an agreement with lenders to renegotiate its banking covenants.
The deal, which will be announced at Barratt’s trading update, should mean the housebuilder can survive without an equity injection.
Taylor Wimpey, whose own appeal for money collapsed last week, is trying to negotiate a similar deal.
In return for a significant increase in interest payments, Barratt’s banking syndicate and US noteholders will relax its banking covenants.
Financial Times, Daily Telegraph