Taylor Wimpey has reached a refinancing agreement with its key creditors after more than nine months of negotiations. However, the company also revealed pre-tax losses of nearly £2bn and net debts of £1.57bn.
The 11th-hour deal came on the eve of a deadline today to seek approval from its creditors, and gives Taylor Wimpey hope for a way out of the debt problems that have seen the group lose more than 90 per cent of its equity value since 2007.
Holders of Taylor Wimpey’s eurobonds are expected to grant formal approval to the deal in meetings on April 30. The company will present its annual report on the same day. The shares closed at 39.75p, up 2.75p on the day but still far below their peak of 518p in April 2007.
Financial Times, The Times, Daily Telegraph