Taylor Wimpey Edges Closer To Debt Deal

Fri, 03 Apr 2009

Shares in troubled house builder Taylor Wimpey soared 18 per cent yesterday morning after the group said it was nearing a deal with creditors to restructure its £1.55 billion debt burden.

According to newspaper reports, the deal is understood to have been agreed with a group of key euro bond holders earlier this week and should end lingering uncertainty over the company’s future.

The group has also been boosted by figures from Nationwide, which showed UK house prices increased for the first time in 16 months in March, rising by 0.9 per cent.

Taylor Wimpey, which holds £1.55bn in net debt, said it expects to formally conclude debt negotiations later this month, with lending terms based on measures such as cashflow and reducing borrowings rather than its underlying income.

Downturns in both the UK and the US housing markets have crippled the company over the past year, with over 1,400 jobs being cut.
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