Retirement housebuilder McCarthy & Stone confirmed today its lenders would take control in a debt-for-equity swap.
Many options have been explored to reduce the heavily indebted builder’s £900m debt mountain.
It said that this agreement, which has the ‘overwhelming support of the senior lenders, will enable the business to continue to trade with ‘minimal alteration to McCarthy & Stone’s day to day operations’.
It will involve the transition of the McCarthy & Stone operating businesses into a new corporate structure via a formal court process.
The ownership of the company will be transferred to the senior lenders.
McCarthy & Stone said it was an important step towards ‘concluding the successful financial restructuring of the McCarthy & Stone business and securing a stable platform for the long term future of the business’.
Howard Phillips, chief executive at McCarthy & Stone, said: ‘Our customers have remained loyal throughout this process, indeed trading has improved through January and February – it is a good time to buy. I would also thank our trade suppliers and sub-contractors for their support as we finish new developments ready for sale .'
