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Wimpey gets house in order with lenders
Lucy Tobin23 Dec 2008
Housebuilder Taylor Wimpey today said it will agree new terms with its lenders by the end of this year as it struggles with debts of £1.9 billion.
The company's banks have allowed it to defer a financial evaluation, due to take place in January, which analysts had believed it would have failed after the year's collapse in house sales,
Taylor Wimpey said: "We are confident that a robust, stable medium-term financing solution will be achieved."
But amid falling UK house prices and mortgage approvals, the construction group last month admitted that it had 6607 houses on its order book, about half the number it reported at the same time last year.
After peaking at 518p in April last year, Taylor Wimpey shares have lost more than 90% of their value, slumping to a low of 4.4p last month.
After a miniature recovery last week when a leaked company memo revealed that there had been productive discussions with banks, the shares were today down ¼p at 14¾p.
