Taylor Wimpey has struck a deal with a group of its main creditors, bringing close to completion long-running talks to restructure its debt and securing greater certainty over its future.

The approval on Tuesday from the eurobond holders gives the company the support of leading members of its three classes of debt for a restructuring. This will ease the pressure from its debt load but hand creditors warrants to subscribe to 5% of stock, according to people close to the situation.

However, the deal encourages Taylor Wimpey to raise about £300m in additional capital, otherwise the cost of its debt will start to increase again from 2010.

Financial Times