Sponsored by
Taylor Wimpey still in talks over £1.7bn debt
Taylor Wimpey has announced a further delay in renegotiating its £1.7bn debt burden, raising concerns of a default on its eurobonds.
The UK's largest housebuilder said that securing a "comprehensive financing structure" was essential in the current market conditions and that its banks have indicated their intention to agree a revised set of banking covenants.
"To that end the board has decided to extend the current discussions with debt providers to include applicable Eurobond holders, which will prolong the negotiation process," it said in a statement yesterday.
Taylor Wimpey has previously indicated it would breach its interest cover covenant by February unless it agrees a new financing package.
One analyst, who declined to be named, said should Taylor Wimpey breach its bank debt or its US private placement debt conditions, bondholders could "cry default" and press for an early redemption of their 450m in bonds.
The analyst said the extension of the discussions brought the eurobond holders into the main arena and was "recognition of the presence of the threat".
Shares in Taylor Wimpey closed up 1/4p at 343/4p yesterday, having earlier fallen as low as 311/2p.
Email to a friend
Print this page- Leeds lose Ward to Palace: Is there anyone they can afford now?
- Sheffield Wednesday leaving it late to hijack Leeds United over Ward
- As Snodgrass dithers over Leeds, Warnock throws a lifeline
- Ball is in Leeds United’s court over contract - Snodgrass
- Police turning blind eye to Asian voter fraud, says MP
Looking for...
Featured advertisers
Jobs
Search for a job
Motors
Search for a car
Property
Search for a house
Weather for Yorkshire
Friday 25 May 2012
Today
Sunny
Temperature: 10 C to 23 C
Wind Speed: 20 mph
Wind direction: East
Tomorrow
Sunny
Temperature: 8 C to 20 C
Wind Speed: 16 mph
Wind direction: East
