Oakdene Homes has called in the administrators after it failed to reach an agreement with lenders over new debt terms.
The residential developer, which is listed on AIM, said in a Stock Exchange announcement today that the Royal Bank of Scotland had appointed PricewaterhouseCoopers (PWC) as administrator.
PWC directors Colin Haig, Mark Shires and Karen Dukes will handle the administration.
Oakdene is the first listed housebuilder to fail in the current property slump.
It has been on the brink of collapse after it failed to reach an agreement with lenders over new debt terms.
The company said in September that it had breached banking covenants and was relying on a temporary facility as it tried to negotiate new lending terms.
In a statement issued to the stock market yesterday, Oakdene said it had requested a suspension of trading in its shares pending ‘clarification of its financial position’ after failing to reach an agreement with banks.
'Unfortunately, the company has not been able to agree terms with its lenders and they have served notice on the company to repay the outstanding facilities,' it said.